99p Stores is gunning to open more than 200 stores by 2014, taking its store count to 350, and is targeting turnover of £1bn by 2016.
The single-price value retailer signed a deal this week for a £3m 370,000 sq ft distribution centre in Northampton, which will open in about three months’ time, to support its expansion plans.
99p Stores has 128 shops at present and expects to open its 200th by the end of the year. The retailer envisages a total of 600 in the long term, and intends to open another distribution centre in the north of England within four years to back this growth.
The Northampton premises, which replace a 150,000 sq ft warehouse in Daventry, will also house a new headquarters. The “state of the art” warehouse will have capacity to store 40 million products, and features roof lights that reduce energy consumption by 15%. It will also have solar shading and water conservation features.
99p Stores said the warehouse will ensure “efficient supply chain to its ever growing national network of stores”.
Chief executive Nadir Lalani expects 99p Stores to continue expanding even as the economy improves. He said: “Boom or bust, high street spending patterns have changed for ever. Our new premises will allow us to expand from our current portfolio of 128 stores to more than 350 over the next four years.”
The retailer has been expanding rapidly as it took advantage of cash-strapped consumers’ flight to value in the recession and opened about 50 stores in its last financial year.
In August Retail Week revealed 99p Stores would consider selling or floating the business within the next three years. In October the retailer appointed former Wilkinson boss Gordon Brown as chairman.
In the 12 months to January 31, 2009, turnover soared from £94m to £113m and like-for-like sales climbed 4.3%.