Poundland cashes in on weak property market
The secret behind the success of growing budget retailer Poundland is due in part to the weak property market. That's according to Jim McCarthy, chief executive of the Willenhall-based chain, who told Insider that “landlords are now very aware of the pulling power they can have with Poundland as a tenant”. The company plans to open a further ten stores by Christmas.
The company has opened more than 50 new stores in the past year, including 35 since the end of its financial year in April. McCarthy said that he hopes to add another ten to the Poundland portfolio before the festive season.
McCarthy’s comments come after it was revealed that the company had reached number 11 on the Sunday Times Top Track list, which names the top performing mid-market private companies in the country. Poundland was the highest-placing company based in the West Midlands.
The budget retailer, which sells all its items for £1, generated sales of £509m in 2010, posting a profit of £21.5m. In the previous year, it entered the Sunday Times’ list at number 37.
McCarthy said: “We were delighted to get a place in the top 20 this year. It’s a testament to the Poundland team and our loyal customer base. The success of the company absolutely revolves around its relevance to customers in this economic climate – so we just keep doing what we do best.”
He added that the company has “a strong growth programme” to assist with its continuing expansion.
“By Christmas, we hope to have opened another 60 stores this financial year. The slow property market is assisting our growth; landlords are very aware of the very powerful pulling power that Poundland has - we will generate the revenue needed”, said McCarthy.
The company employs more than 6,700 people across the UK and currently owns almost 300 stores. It was bought private equity firm Warburg Pincus in May this year, in a deal thought to be worth £200m.
