Poundland set to strengthen
The chief executive of Poundland has told Insider the company will expand “at least at the same rate as last year – probably more”. Jim McCarthy confirmed the Willenhall-based budget retailer is expecting to build on the 53 new stores which were opened across the country in the past year and said the chain would enjoy its “best Christmas period ever” in 2010.
On the back of a successful year of trading, which saw the group increase its operating profit by 47 per cent to £11.8m in the year to 29 March, McCarthy confirmed the group would undergo nationwide expansion with at least another 53 openings expected in the next year. “We will continue to grow," he said.
“We will have opened 20 outlets in Northern Ireland by the end of the year and they are proving to be hugely successful.”
He also said the group would record its best Christmas results over the festive period this year. He said: “We are confident of hitting all our targets this year. It’s going to be our best Christmas ever – customers want value and good quality products; at a time where people are shopping-savvy, we will be there to provide for their needs.”
However, McCarthy took the chance to dispel the myth that the bargain outlet has been trading better during the downturn.
He said: “It’s a common misconception that we trade better when the economy is bad. We don’t – when there is a busy, vibrant high street, there are more people with more money spend in our stores," he said. “We are a better business in good times. When 10 or 12 per cent of the high street is empty, it is not an attractive place for consumers to come and spend their money.”
The chief executive, who has been at the top of the Poundland empire for the last three-and-a half years, said that despite competition from other similar budget retailers, he is confident in the future of Poundland.
“We have had a simple, one price strategy for 20 years," he said.
“We have never had to roll a price back or forward in that time. Sometimes, retailers which fail are the ones that leave their roots in pursuit of higher margins - we haven’t done that.
“The future of Poundland will depend on the group’s ability to grow, and our commitment to the £1 strategy.”
