One shop bucks trend as shoppers feel the pinch
Cash strapped shoppers are tightening their belts, but at least one retailer is on the up.
Poundland said today that sales and profits were soaring as customers seeking value for money flocked to its stores. Retailers say that these are among the toughest conditions for decades, with few high street names expecting to do well this year.
Even the mighty Tesco has reported that profit in the UK will be flat at best. Poundland, which has been selling everything for £1 since it was founded in 1990, saw sales in the last financial year jump 26 per cent to £642 million.
Profit was up 34 per cent to nearly £32 million, giving the company cash to expand. It opened 64 shops in the last year, taking the total to 327. The company says it will open another 50 this year.
Poundland was bought by private equity firm Warburg Pincus last year in a deal estimated at £200 million. Retail analysts say the company has benefited from the demise of Woolworths.
It has 33 stores in London including in Croydon, Ealing and Peckham.
Chief executive Jim McCarthy said: "It is clear that the challenging economic climate is set to continue for some time yet and that an increasing number of consumers will continue to seek exceptional value for money. Poundland is perfectly positioned to serve the needs of consumers who place value for money at the heart of their purchasing decisions."
