99p Stores looks to cash in further as shoppers seek bargains

Published on Sunday 7 March 2010 21:21

BUDGET brand 99p Stores yesterday unveiled plans for an explosion in shop numbers as it continues to attract bargain-hungry consumers during the economic downturn.

The firm – which currently has 129 UK outlets – said it plans to grow its portfolio to more than 350 stores in the next four years after enhancing capacity with a move to a new national distribution centre.

The company said its expansion plans would see staff numbers double by early next year to 6,000.

Over the past year, 99p has already doubled in size, targeting 56 former Woolworths sites. It plans to continue seeking out high street sites left vacant by the collapsed retailer.

The 99p Stores brand was conceived in 2001, under-cutting the 1 competition. It now boasts that more than 1.5 million people are weekly shoppers at its stores.

The new 3m distribution centre in Northampton will also become the firm's headquarters and is expected to be up and running by early this summer. It will have capacity to store more than 40 million of 99p's products, ranging from cosmetics to food.

The firm said more than 60 per cent of its products were well-known household brands such as Colgate, Nivea, Pepsi, Tate & Lyle and Pringles.

Chief executive Nadir Lalani said the expansion to 350 stores was the firm's "short-term plan" and it hoped to add another distribution centre in the North of England within four years to build the chain to more than 600 stores.

The firm said it was confident of reaching sales of 1 billion in the next six years.

"Boom or bust, high street spending patterns have changed forever," Lalani said.

"Shoppers now realise they have been paying way over the odds for essentials and well-known brands for too long."