Single price-point retailer 99p Stores has reported strong growth as shoppers flock to its stores in an effort to better control their purse strings.
99p Stores reported like-for-like sales up 7.1 per cent for the three months to June. This followed a 7.2 per cent increase in like-for-like sales between January and March.
“The situation in the financial markets is definitely helping us,” said 99p Stores buying director Faisal Lalani. “There’s been a definite trend this year, with more shoppers and higher spending and we expect the trend to continue.”
He added that shopper numbers are on the rise, up 3.6 per cent in the three-month period, averaging between 575,000 and 600,000 customers each week. He said average spend rose 4.3 per cent to£4.20 per shopper in the same period.
Lalani is also confident shoppers will remain loyal to 99p Stores once the economy stabilises. “There is a stigma attached to shopping in discount stores, but once it becomes routine for people to shop with us, they’ll stay with us,” he said.
“A lot of customers come to us before they do their main supermarket shop. We’re always the cheapest on the market.”
In full-year figures filed at Companies House, turnover jumped 16 per cent from£80.8 million to£94 million for the year to January 31. Lalani said the retailer is expecting further rosy times ahead, forecasting more than£4 million EBITDA for the year to January 2009, compared with£2.7 million for the previous year.
99p Stores aims to open another eight stores by the end of this year. “There are more opportunities during these times,” added Lalani. “It’s easier to find locations and negotiate better terms.”