Value retailer 99p Stores has recorded a 7 per cent hike in like-for-like sales for the calendar year to date as cash-strapped shoppers flood to its shops.
The retailer said that, with store acquisitions, it expects to post an annual turnover of more than£130 million for the year to January 31, 2009, compared with the£94 million recorded for the previous year.
Buying director Faisal Lalani told Retail Week: “Tough market conditions always help us, but our success is not purely down to the environment, but to the scale of the business now. Our offering is getting better and better. We’re really pleased and we’re expecting the trend to continue.”
Shopper numbers are up 3.7 per cent and average transaction value per customer is up 3.2 per cent in the calendar year to date.
The single-price retailer opened its 59th store in Bracknell, Berkshire, this week. It said its store numbers will increase to between 65 and 70 by the end of the year, with plans for 20 stores a year for the next three years.
“The size of the business will have doubled within three years,” said Lilani. “We will be nearing the same size as Poundland.”
The retailer said the potential sale of its 187-store rival Poundland shows how the sector is booming. “Advent selling Poundland demonstrates the success of the single price concept and how valuable a retail format like that is.”
99p Stores has recently introduced a new mix and match deal for the lunchtime trade, offering any four snack items for 99p. After what it described as a “very successful” launch it expects 2 million customers a year to take up the offer.
In the year to January 31, 2007, 99p Stores made a pre-tax loss of£1.14 million. The company said that since then consumers have become more cautious with their money, helping to boost sales in the value sector.