Poundland has capitalised on the way shopping habits have changed during the tough economic climate of recent years.
The business increased its scale considerably through the acquisition of 99p Stores in 2015, but a year later closed 80 stores to limit cannibalisation and duplicates following this deal.
Its overall network - including the Dealz fascia in the Republic of Ireland, Spain and Poland - stood at around 840 outlets as of early 2020.
The discounter dipped its toes into ecommerce through the launch of a transactional site in 2015 but pulled the plug just two years later to focus on the core business.
However, the retailer has gone on to trial a new online delivery service from early 2021, as well as splitting its store estate into three types: ‘destination’; ‘core’; and ‘convenience’, as part of a new transformation programme.
Poundland has come under ownership of South African retailer Steinhoff from 2016.
Steinhoff became embroiled in an accounting scandal in late 2017, but parent company Pepco Group has since severed financial ties with the business and refinanced high-interest loans.
Overall sales came in at £1.5bn during the 52 weeks to 29 September 2019, while pre-tax profit climbed 20.8% to £18.5m. The retailer’s performance was boosted by the expansion of Pep&Co branded shop-in-shops within larger Poundland stores and the addition of multi-price areas in its outlets.
Innovation rating: 1.5