99p Stores has revealed another bumper year of sales and profits as it lays out plans to become a “one-stop” convenience shop by ramping up its food offering.
The single price retailer notched up pre-tax profits of £1.8m in its full year to January 31 - a six-fold increase on last year’s £333,348.
Total sales surged 63% to £183m across its 130-store portfolio in the period, and buying director Faisal Lalani expects to make “at least £250m in sales” in the current financial year. He said: “Last year we opened 62 stores, doubling the size of the business. Next year will be a lot better as we will have traded those stores for a full year.”
99p Stores wants another 35 stores this financial year. Lalani said: “Sales are very encouraging this year. Because of the recession we’ve been attracting more customers we wouldn’t have attracted otherwise.”
The retailer is also ramping up its food offering, installing fridges that sell eggs, cheese, yoghurt, meats and bread in all of its stores after a trial in 20 shops in March. It is also in the process of licensing stores so they can sell alcohol.
Food accounts for 40% of the retailer’s mix currently, but Lalani said this could grow to 50%.
ntention is to become a one-stop shop. Fresh food is the main request from customers who want to be able to finish off their shopping in our stores,” said Lalani.
This week the retailer moved to a new warehouse and head office in Pineham, Northampton, which will “prove a step change in infrastructure, giving us the capability to service up to 400 stores in the future”.