Thursday, February 21, 2019

Poundland profits fall but could open 1,000 stores


Discounter Poundland has increased total revenue to nearly £1bn as it posted its results following its stock market flotation in March.

Total sales rose 13.3 per cent to £997m for the year to 30 March compared with £880.5m a year earlier.

But pre-tax profit fell 18.9 per cent to £21.5m while like-for-like sales rose 1.9 per cent against a 1.7 per cent fall last year.

Mr McCarthy said: “After a pleasing start to 2014-15 we are confident of further progress through the year whilst recognising our critical third quarter lies ahead of us.”

McCarthy told the BBC that he could open up to 1,500 stores but said “internally we use 1,000. It‘s a nice round number.”

The retailer, who serves around 5m customers each week, will open 70 new stores bringing its total estate to 528.

Poundland leads the discount retail market in the UK, dwarfing rivals 99p stores and Poundworld, and will open a new purpose built 350,000 sq ft distribution centre in Harlow in August.

Shares rose 5.1 per cent to 345.5p on the news.

David Alexander, consultant at analyst Conlumino, said there were further avenues for growth available for the retailer and its rivals in “flourishing” out of town locations.

He said: “The well-publicised struggles of the British high street have provided single price retailers with a steady supply of vacant lots to move into, but as value players become more entrenched in the mainstream of British retail, the battle for supremacy is no longer confined to the high street. “

Did you know about Poundland?

Average number of transactions per week was 4.9m – up 11 per cent

Average transaction value was £4.55

It opened its first store in Spain today under the Dealz banner

22 per cent of customers are from the AB demographic


Please enter your comment!
Please enter your name here