Sales surge at Poundland as store roll-out plan gathers momentum

WEST Midlands-based discount retailer Poundland Group has seen sales leap by 13.3% year on year.

The Willenhall company, whose shares started trading on the London Stock Exchange in March, revealed in a trading update this morning that in the 52 week period ended March 30 total sales were £997.8m year compared to £880.5m in 2013.

Poundland is the largest single price value general merchandise retailer in Europe by both sales and number of stores. The group opened its first store in 1990 and has grown to operate a network of more than 500 across the UK and Ireland.

Its figures released this morning chime with those of other discount retailers such as Aldi and Lidl whose fortunes have risen over the last few years as shoppers search for value for money.

Poundland said it had delivered a good underlying profit performance with margin well managed and costs tightly controlled across the business. It is expecting that underlying profits will be in line with market consensus.

The group said its store opening programme continues to progress well, with 70 net new stores opened during the period, bringing the total estate to 528 stores at the year end. 

It has identified further opportunities for growth, both in the UK and internationally, with plans to open 60 net new stores a year in the UK and Ireland and to move towards ten trial stores in Spain over the next two years.

Jim McCarthy, chief executive officer, said:  “Poundland delivers amazing value to our customers every day and millions of them, across the UK and Ireland, are voting with their purses and wallets every week.

“As a result of this support from our customers, we have achieved another record profit performance across the group, with our store opening programme on track, underlying profits in line with market consensus and good cash generation.

“Looking ahead, we will continue to manage the business tightly while investing in clear opportunities for future growth.  We are confident in making further progress in the new financial year.”

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