On this morning’s news it was reported that the Poundland chain of shops would acquire the 99P chain in a deal that valued Poundland at 750 Million pounds. Not bad for a business that started just 25 years ago.
The founder watched his father in his market stall and noticed that the cardboard box containing clearance items for a few pence always attracted interest even on slow days. The first Poundland store took £13,000 on the day it opened. They searched the world for things they could sell for a pound and the list even included golf clubs and desks.
When Sir Ken Morrison ran the Morrison’s supermarket chain he once observed that “Everybody likes a bargain.” Interestingly he too had a bit of market stall experience in his formative years. Perhaps the current executive directors should spend some time at that, the sharp end of retail.
The fact is that today’s consumers are every bit as interested in value for money as their parents and grandparents were and retailers who forget that end up struggling, irrespective of their location, location, location…