Poundland is to launch a transactional web site, possibly before the end of next year, in an effort to attract consumers not served by any of its stores.
The retailer is working with KPMG to develop a model, which will include a minimum spend and a range of delivery charges. Poundland is considering offering free delivery after a certain threshold is reached.
The site will offer a limited range of products, some sold by cases, with best-sellers and seasonal items featuring strongly. Halloween and Christmas offers are expected to do particularly well online.
“There are huge swathes of the UK who don’t get the Poundland proposition and who find it more convenient to shop online,” Poundland chief executive Jim McCarthy told Retail Week. “Market research suggests there is a big appetite from the public for value items [sold online].”
When Poundland launched a similar trial scheme several years ago, its average transaction value was£25.
The single-price retailer has also introduced eggs to eight of its stores as part of a trial, on the back of customer research. The eggs are all sourced locally and sold alongside its other fresh food, such as sandwiches.
Poundland, which has recently increased its food SKUs by 50 lines in 60 of its 188 stores, said eggs are likely to be a “top 20 volume seller”.
However, the retailer will not veer away from its general merchandise foundations by increasing food lines much further. Food now accounts for 14 per cent of store space and 28 per cent of revenue.
“Egg sales have been excellent so far,” said McCarthy. “But we will remain a general merchandise, single-price retailer. We don’t want to be a quasi-Kwik Save.”
Last week, Poundland revealed its EBITDA leapt 43 per cent to£15.7 million in the year to March 31.
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