Poundland plans 30 new stores

Published on Monday 12 January 2009 20:24

BARGAIN hunters have helped discount retailer Poundland to post a "steady" rise in sales over Christmas and have prompted "significant" expansion plans, writes Peter Ranscombe.

Like-for-like sales rose by 3.9 per cent in the five weeks to 4 January compared with the same period last year.

Total sales – including those from new stores – leapt by 24.3 per cent, with more than two million customers passing through Poundland stores each week.

Poundland – which sells each of its 3,000 products for 1 – plans to create 1,000 jobs this year by opening 30 new stores, including an undisclosed number in Scotland.

The chain already has 6,400 staff working in more than 200 stores, including 27 shops north of the Border.

Jim McCarthy, Poundland's chief executive, said: "It is clear that Poundland has been one of few retailers reporting growth during Christmas.

"We are well positioned to capitalise on the continuing strong customer trend to shop savvy and seek value for money.

"We also plan to increase the store base significantly, opening a further 30 stores to help even more customers through the tough times ahead and create over 1,000 jobs".

The chain sells a range of products from food and drink – including household names such as Walkers, Cadbury's, Nestl and Tetley – through to household goods, such as Flash, Domestos, Cif, Ajax and Fairy.

Poundland, which opened its first store in Burton-upon-Trent in 1990, has been owned by private equity firm Advent International since 2002.

Instore, which owns rival discount chain Poundstretcher, is yet to report on its own Christmas trading.

But the group's last sales figures for the seven weeks since the end of August showed a 1.9 per cent like-for-like increase – compared with a 1.4 per cent decline in the six months to 30 August.