Single price point retailer Poundworld is to roll out it multi-price format, Discount UK, as it opens its second store in Stevenage.
The retailer opened the first Discount UK store in Leeds in October as a way to widen its product base and increase its average value transaction.
The news comes as the group revealed it is on track to clock up a £135m turnover in the year to March 2011, and expects turnover to exceed £200m next time.
Discount UK opened the Stevenage store at the weekend, and plans another 12 this year. In the longer term it plans to develop a national chain. Products will be priced up to about £25.
Chris Edwards, Poundworld’s buying director and son of the founder, also called Chris, is heading the project. He described it as an “up-to-date Woolies, with a vibrant look and more choice and value”.
The retailer has ploughed £250,000 into the Stevenage shopfit. Marketing manager Martyn Birks said the Discount UK fit-out was “clean, smart and well-stocked”. He added: “It’s a slick-looking operation.” He said the new shops will enable the group to expand into product categories such as bed linen, as well as widening existing categories such as toys and electricals. Footfall drivers will remain milk, groceries, toiletries and books.
Birks said the first few days of trading had been “excellent”.
The Stevenage store covers 12,000 sq ft of selling space, and the retailer is looking for bigger units in retail parks as it expands. Birks said Poundworld, which has 106 shops, will be opening “at least” another 30 this year and ruled out rebranding any Poundworld stores to Discount UK. He added: “We’re in the right market. We’re investing and going forward.”
Retail Week Knowledge Bank director Robert Clark said Discount UK “could be a logical step” as single price point retailers are “clearly facing cost pressures”, but he warned that it was launching into a crowded market.