Retail Week Live: Poundland eyes up to 70 stores for new multi-price format

Speaking at Retail Week Live, outgoing Poundland chief executive Jim McCarthy said the opportunity was there after it had inherited 27 “very large” shops, formerly Family Bargains, as part of its acquisition of 99p Stores.

“We can use the core Poundland offer and build a range by category. If that works we’ve got 50, 60, possibly 70 stores that we can use to do that,” said McCarthy.

Poundland first revealed plans for the as-yet-unnamed multi-price format last November.

However McCarthy, who will hand over the reins at Poundland to former B&Q chief Kevin O’Bryne next month, warned: “There are some great multi-price retailers already doing wonderful stuff. It’s not an easy market. If it works, great, if it doesn’t we kill it.”

Poundland has been rapidly converting 99p Stores to the Poundland fascia since the deal completed last September. Conversions are currently being done at the rate of two a day, with 180 so far completed.

More than 200 99p Stores are expected to be converted by next month and around 30 are being sold by Poundland.

Meanwhile, McCarthy also revealed Poundland has introduced self-service checkouts in some of its stores. Around two-thirds of customers are preferring to use the checkouts, he said.

“We have to become more and more efficient,” he added.

McCarthy also refused to rule out losing shop staff due to the cost impact of the national living wage, which takes effect next month.