Discount retailer Poundland has seen sales rise 21.6 per cent as it continues its focus on expansion across the UK and Ireland, it has been reported today.
Recording a turnover of £780 million for the 52 weeks to April 1st 2012, the company also saw underlying EBITDA of £40.1 million, a 26.5 per cent increase on the same period last year allowing it to maintain its position as Europe’s largest single price discount retailer.
Over the period, like-for-like sales also saw a strong rise, outperforming the market with a 2.3 per cent increase, while gross margin soared 22.2 per cent to £287.7 million.
Such positive figures have allowed the company to move forward with plans for growth as 22 new stores have opened so far in 2012. In April, another milestone was achieved as the retailer opened its 400th store.
Over the course of the upcoming financial year, at least 60 new stores together with a new south eastern distribution centre are expected to open, creating 2,000 new jobs.
The distribution centre, set to be 200,000 sq ft, will be based in Hoddesdon, Hertfordshire and will be used as a regional facility to service stores in the South of England.
Poundland CEO Jim McCarthy explained the reasons behind the retailer’s record-breaking success.
“Poundland continues to offer amazing value to over 4 million customers every week,” he explained.
“Our strong sales and volume increases demonstrate that customers recognize the exceptional value for money that Poundland offers.
“Our fixed price makes it easy for families to budget as they can see how much they’ve spent, before they get to the checkout.
“We are excited about the year ahead as we continue our rapid expansion and hope even more customers, across the UK will be saying ‘I can’t believe it’s £1!’”
As the winner of the ‘2011 Discount Retailer of the Year’ award, Poundland believes it works hard to offer cash-conscious families good products at reduced prices.
In its financial statement, the company said: “The UK consumer remains under pressure as a result of the ongoing difficult economic conditions that prevail in the UK and Ireland.
“Our products are of increasing importance to challenged customers from all socioeconomic groups. Notwithstanding the challenges of the economy and the competitive environment, Poundland is expected to perform robustly in the coming year.”