• Multi-price retailing not enough to save Poundworld, says GlobalData

        • Following today’s news (Monday 11th June) that Poundworld has collapsed into administration, Emily Stella, Lead Analyst at GlobalData, offers her view on the current status of the UK discount market.

          Emily said, ‘‘Poundworld’s introduction of multi-price retailing and smaller product sizes has failed to shore up margins, and the discounter has been forced to appoint administrators today. 

          ‘‘Poundworld has faced several headwinds: difficulty absorbing inflation, a mature store portfolio with little room for further expansion, and fierce competition. In the year ending 31 March 2017, the discounter reported an operating loss for the first time in its history of £6.2m. Poundworld is not the only discounter with problems; insurers withdrew credit from The Original Factory Shop this month after falling profits and plans to close a large portion of its store estate, and Poundstretcher announced a fall of 7.5 per cent in its full-year sales to March 2017. 

          ‘However, there are also many exceptions within the UK discount market; primary rival Poundland, with 7.5 per cent share of the discount market – three times more than Poundworld – is performing well. The market leading ‘pound’ store stormed the media recently with its outrageous marketing campaigns, which have kept consumers entertained and engaged with the brand. The rival discounter has also benefited from greater buying power after its acquisition of 99p Stores in 2015, helping the discounter keep costs down.  

          ‘‘As multi-priced discounters such as B&M Stores and Home Bargains expand rapidly – B&M Stores alone has gained 4.5 percentage points of market share in the last five years – the historic ‘pound’ stores could find it difficult to keep up.’’

        • Stay up to date - Click here and register for FREE OEN online membership and enjoy unlimited access to a host of benefits including the exclusive members area of the website, downloadable business tools, current and back issues archive, priority breaking news alerts, weekly e news summary and the OEN app

        • Related Articles

        • Sports Direct acquires House of Fraser

          Sports Direct acquires House of Fraser

          Friday 10th Aug 2018 by clareb
          Following today’s news (Friday 10th August) that Sports Direct has purchased House of Fraser for £90m, GlobalData is urging Mike Ashley, Sports Direct’s billionaire owner,to transform House of Fraser to make it a success. ...Read More...
          Businesses must embrace the digital workplace or risk being left behind

          Businesses must embrace the digital workplace or risk being left behind

          Friday 3rd Aug 2018 by clareb
          Organisations that do not have right infrastructure in place to support flexible working will simply be outpaced by savvier competitors. This is according to M-Files, commenting on new research from Ingram Micro Cloud and Microsoft, wh...Read More...
          British workers investing in technology for pets whilst they’re at work

          British workers investing in technology for pets whilst they’re at work

          Wednesday 1st Aug 2018 by clareb
          British pets are now being entertained and fed from home while their owners are at work using the latest smart technology according to new research.  The survey of 1,007 UK adults carried out by gadgets and technology e-tailer, Laptop...Read More...
                • About Us

                  OEN is the leading source of business news and information for buyers of office equipment, supplies and services within mid tier and up sized organisations. Our multi-platform approach delivers relevant, engaging and focussed content via our main printed magazine, bespoke guides and supplements, website, digital editions, apps, and newsletters with an unrivalled reach across the industry. A highly trusted and respected brand for many years, the print version of OEN last year celebrated its Diamond anniversary.

                  For our latest Media packs and more details on our range of services click here

                • View Latest Issue