- Multi-price format to be trialled next year
- Names under consideration are Poundland Plus and Poundland Extra
- About 30 of its 99p Stores exepcted to be disposed off following deal
Poundland plans to trial a new multi-price store format using some of the Family Bargains shops it picked up in its acquisition of 99p Stores.
The trial will start next spring in an unspecified number of the 27 Family Bargains shops that Poundland acquired as part of the deal in September. The stores are on average around two-and-a-half times bigger than its normal shops.
Poundland boss Jim McCarthy insisted the format will not be replacement for its core Poundland stores, but instead an addition. “It’s another brand we hope will be successful and appeal to consumers,” he told journalists today.
McCarthy said all the assets were already in place for the new format, but the company has yet to decide on a name.
He revealed that ‘Poundland Plus’ and ‘Poundland Extra’ are among those under consideration.
McCarthy declined to say what the new format will stock, but said it will be a “bit different” from what Family Bargains currently offers.
Earlier today, Poundland revealed that its half-year underlying pre-tax profits fell 26%, while like-for-likes fell 2.8%.
McCarthy revealed 20 of its 99p Stores have so far been converted to the Poundland fascia. Of the 251 stores Poundland has acquired, he said “more than 200” will be converted.
He acknowledged that it could dispose of about 30 of its 99p Stores. Retail Week revealed last month that Poundland had hired Hilco to renegotiate rents on the 99p Stores estate.
McCarthy said today: “Some [99p Stores] sites are over rented and we are in discussions with landlords about the future of those stores.”
But he added: “Hilco was not brought in in its traditional role of running a distressed business. Hilco was planned back in April. This is just to keep our costs going down as we transition.”
Poundland expects the transition of 99p Stores to the Poundland fascia to be completed by next April.