Confident Poundland set to open first store in Eastern Europe
While its South African owner may be struggling, Black Country-based Poundland is going from strength-to-strength with plans to open its first store in Eastern Europe next year.
At home and abroad the discount chain is racking up the sales as millions of customers a week flood through its doors.
Around 18,000 staff are serving seven million customers a week at 860 stores around the UK and Ireland.
And there are hints it could be on track for its biggest Christmas since the first store opened in Burton on Trent back in 1990.
While it has moved away from its single price format of selling everything for £1, with some goods priced at £2 or £5, it is still the shop of choice for half of the nation's households. And that has grown to include shoppers in Spain and, since last year, in France too.
And a briefing for bankers this week revealed the company is about to open its first store in Eastern Europe: in Poland in February.
Founded by former market trader Steve Smith and his father from an upstairs office in Sedgley, the company is still based at its headquarters in Willenhall, employing around 700 people there and at its major warehouse in Bilston, as well as scores of staff at stores around the area.
The Smith family sold up for £50 million in 2002 and the company went on to have a string of owners. Most recently it was bought by the South African-based retail giant Steinhoff last year in a £610 million deal.
But Steinhoff is now caught up in a major accounting scandal that has already see both its chief executive and its billionaire chaiman quit.
Poundland's bosses issued a letter to their staff this week talking about how well their business is doing at the moment, and a report to Steinhoff's bankers and lenders on Tuesday underlined that confidence.
The success of nine stores in Spain has led to Poundland, under the Dealz brand name it uses in Europe, opening seven stores in France over the last year. It has also opened 130 Pep&Co budget fashion outlets within Poundland stores. Pep&Co is a sister businesses within Pepkor, the main Steinhoff umbrella group in Europe.
Pepkor also owns the fashion-led Pepco discount chain in Eastern Europe but bosses believe their is a major opportunity in the region for Poundland's Dealz business.
It comes after a strong turnaround for Poundland last year. The company had struggled from the impact of delays and unexpected costs from takeover of the 99p Stores chain in 2015.
But new figures show that sales growth has continued at more than four per cent last year and this year despite a slowdown in the wider shopping market.
As Poundland's managing director Barry Williams, and Pepkor chief operator officer Sean Cardinaal, said in their letter to staff this week: "In just 12 months we’ve re-established a robust, profitable business generating cash and trading more strongly than we have in many years.
"We’re excited about trading in this final week before Christmas this week and into the New Year. We’re on a roll and can count on your support to ensure we keep delighting the customers old and new in our stores."
