Poundworld has secured £26 million in new funding to open more stores in Britain and grow its overseas supply chain.
The discount retailer, the third-largest single price point retailer in the UK, yesterday said it intends to expand its total UK stores – currently standing at more than 240 – by 40 to 50 each year for the next three years. It also aims to open more distribution depots, and already 30 per cent of its suppliers are based overseas.
The new funding arrangement includes a £17.6m import loan facility on extended terms.
Founder and chief executive Chris Edwards said the family-owned business, which has an annual turnover of £340m and about 5,000 staff, is continuing to flourish as households rein in spending. About two-thirds of the UK population are said to having shopped in a value retailer in the past 12 months.
Edwards said: “There is strong demand from UK consumers for our value goods and everyday items, and we are pleased to be opening more stores and expanding our international supply chain to meet this demand.”
He added that the trade finance, provided by Santander Corporate & Commercial, will back the company’s growth ambitions.
Paul Watkin, relationship director, large corporates north at the banking division, said Poundworld operates in “one of the fastest-growing segments in the retail sector”.
Poundworld is celebrating its 40th anniversary, and says it created the “everything for £1” concept.
The chain has branches in several Scottish locations, including Hermiston Gait and Cameron Toll in Edinburgh, reaching as far north as Inverness.
It also has a Bargain Buys brand, and opened a branch of this in the capital’s Craigleith Shopping Park last week, creating 20 jobs.