Discount store Poundland has seen an increase in sales in this tight economy as people are looking for ways to stretch their money. The discount store, that sells items in their store for 1 pound, is planning to open 50 new stores to add to its chain of 263. The company says the new stores will add 2,000 new jobs.
Poundland reported this week that their annual profits were up by 81 per cent to 21.5 million pounds, on turnover of an increase of 28.7 per cent to 509.8 million pounds. The company is owned by private equity Warburg Pincus. Poundland’s chief executive, Jim McCarthy, believes there will be further growth and more expansions. He believes there could be 800 outlets within the next couple of years.
McCarthy said: “With the economic uncertainty continuing, we are seeing many more first time shoppers joining our… customer base and with this trend set to continue, I remain confident of our prospects for the current financial year.
“Consumers feel hard pressed and under pressure. Their confidence in the future is pretty shattered.
“We have two types of customer. We have those that need to shop with Poundland and at value retailers, and we have those that choose to shop as they seek to preserve their lifestyles and their standard of living.”
Currently the West Midlands based company employs 7,500 people and in the last financial year that ended in March the company opened 56 new outlet stores. The store sells from a range of 3,000 products, including 1,000 branded goods. It’s biggest sellers are cigarette lighters and boxed Maltesers. More than 3 million customers shop there each week.