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Poundland plans pricier goods

TAKEOVER: Poundland

POUNDLAND have announced that thanks to their new owner, the budget retailer’s will be focusing on adding a “multi-price point” range.

South Africa’s Steinhoff, which bought the discount chain in a near-£600 million deal last year, said Poundland was “trading ahead of expectations” and same-store sales growth was “positive”.

It wants to introduce a range of products costing more than £1, bring in more clothing, improve its supply chain and optimise its store network.The chain closed 57 loss-making stores in the six months to March 31, which Steinhoff said would lift profitability, and put a further 21 concessions of Pep & Co, Steinhoff’s value fashion brand, in branches.

British shoppers have been flocking to low-cost retailers in recent weeks as the rising cost of living squeezes household budgets. B&M, Aldi and Lidl have all seen buoyant sales.

Steinhoff, which also owns UK furniture chains Bensons for Beds and Harveys, said it remains “excited about the Poundland acquisition”.

Group revenue rose 48% to €10.2 billion (£8.9 billion) while operating profit was 13% higher at €903 million.

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