Value retail chain 99p Stores has seen profits rise 14 per cent over its full financial year, according to figures released today.
For the year ending January 31st 2012, the discount retailer saw turnover rise 18 per cent to £270 million and confirmed plans to expand its store portfolio as customers are driven away from big grocers in favour of cheaper alternatives.
Over the last 12 months, the retailer has opened 51 new branches and plans to open “more than 100” in the coming two years, creating 3,000 new jobs.
Commercial Director of 99p Stores Hussein Lalani, pointed out that consumers are favouring the retailer over increasingly competitively-priced supermarkets.
“Our customers are telling us they are fed up of having been ‘ripped off’ for years and years paying up to three times the price for essentials,” Lalani said.
“Times have changed, spending patterns have shifted - and our record results demonstrate this.
“The rapid emergence of price comparison sites and fast smartphones is only adding to the awareness of price and value out there.
“Those supermarkets that have been charging two and three pounds a throw for everyday essentials like washing-up liquid, toothpaste, tea and coffee have lost credibility.”
Around two million shoppers now visit the stores weekly, a 25 per cent increase on last year, though figures suggest a slowing in overall profit growth for the retailer, following a pre-tax profit increase of 350 per cent last year.
Despite this reduction, Lalani remains positive and believes that the retailers’ move to frozen food and fresh fruit and vegetables has made it a ‘one-stop shop’ for cash-conscious customers.
“Overall these are record results showing we are one of Britain’s fastest growing retailer,” he added.
“And we would like to thank each and every one of our family of two million customers for making this happen.”