As consumer shopping habits shift, to where the convenience and the bargains are, Poundworld has announced a staggering operating profit increase of 130%, reaching £14.6m after an impressive year. The discounter, which began as a mere Wakefield market stall in 1974, is now the UK’s second largest single price retailer.
Sales were strong throughout the year, with like for like sales averaging at 5.6%. Turnover reached £422.3m, a 22% rise from 2014 resulting from the strong like for like performance, 38 new store openings and the contribution resulting from last year’s openings. Poundworld had 280 stores nationwide at the end of FY15 and currently has plans to accelerate its store expansion programme to in excess of 60 stores yearly from 2016 onwards. This success is reflective of larger trends, as more and more discount retailers attract customers who previously turned their noses up at them.
CEO Chris Edwards said: “We have seen a record financial year and one of landmark progress for the company.
“We expect the year ahead to be one of development and consolidation that includes investment into a new 500,000 square foot warehousing facility adjacent to our current head office and the replacement of our existing ERP system. We’re confident that these changes will provide a strong platform for rapid growth over the next three years bringing our proposition of convenience and value to even more customers across the UK.”
Poundworld serves an estimated 2m customers every week and currently operates 295 stores through two distinct fascias, Poundworld and Bargain Buys, which trades from over 50 locations UK wide.