Poundland to slow down expansion plans
POUNDLAND will slow down its expansion plans over the next 12 months to concentrate on making a success of the integration of the 99p Stores chain.
Having added 331 stores to its group, it has said it will “concentrate upon extracting value from a significantly enlarged store portfolio” and open fewer new stores this year.
The discount retailer announced a 4.8% rise in sales at its core stores, with the contribution of 99p Stores resulting in a 17.9% rise to £1.31bn for the year to March 27.
However the final three months of the year were “tough”, with sales only up 3.5% in its mature Poundland estate. Despite that, in expectes pre-tax profits will be “broadly in line” with market expectations.
The group has accelerated its 99p Stores conversion programme, which has shifted additional costs into its 2016 financial year, although the total cost of the programme is expected to remain unchanged.
Poundland chief executive Jim McCarthy said: “Against a tough retail background, this has been a transformative year for Poundland, strengthening further our position as Europe’s biggest single-price discounter. We have added over 300 shops to our portfolio in the UK & Ireland, in particular in the South of England, substantially increasing our geographical reach and scale.
“The 99p Stores’ conversion programme will complete by the end of April, at which point we expect to see the significant benefits of over 900 stores trading as one cohesive retail operation begin to materialise.”
