Poundstretcher has posted a healthy boost in its full-year profits as the value retailer rejigs its store estate to focus on retail park openings.
Poundstretcher’s full-year stats
- Pre-tax profit up 13%
- Turnover down 7%
- A net five stores closed during the period
The value retailer recorded a 13% uplift in its pre-tax profit to £2.7m in the year to March 31, although turnover dropped 7% year on year to £397.4m.
The retailer ended its financial year with 385 stores, having opened 21 new shops and closed 26 during the period.
Poundstretcher said it had closed “older, smaller stores in less attractive locations” and had prioritised opening “larger, modern stores in prominent out-of-town and retail park sites”, in a similar strategy to rival B&M.
The retailer said it would continue to pursue this strategy in the year ahead as a means of differentiating itself in an “increasingly competitive and challenging” trading environment.
A statement from the retailer said: “The company’s activities are affected by the underlying economic climate but the directors believe that this presents opportunities given the value nature of the company’s offering.
“The directors are ensuring that sourcing of products remains robust to take advantage of the marketplace.”
Poundstretcher’s latest results coincide with rival Poundland’s move into homewares as the retailer trials selling vacuum-packed mattresses across 20 of its stores.