UK DIY News
Poundstretcher Takes Advantage of Retailer Closures to Expand Store Network
A report by trade publication Property Week has revealed that Poundstretcher has swooped on retail properties left unoccupied following a raft of CVA announcements by UK retailers.
The discounter opened more than 40 new stores in the last three months and is planning to open 40 more by April 2019, plus a further 120 the following year, with the ultimate aim of doubling its store estate and reaching a network of around 800 stores by mid-2022.
Gerry Loughran, Poundstretcher's Managing Director, told the Property Week: “We see ample opportunity on the high street now with the dip in the rental cost for better property and the size available.
“There has been a big change in consumer spending habits in recent years; everybody loves a bargain now.
“We believe what we offer in store can’t be emulated by Amazon online.”
In addition to having taken on over 40 former Poundworld sites, Gerry Loughlan said that the company had also seen a significant increase in like-for-like sales in stores near to the closed units.
It is understood that the discounter will take on a further 40 Poundworld sites in the coming months and will also add 20 stores formerly occupied by The Original Factory Shop stores in the first half of 2019.
“We have signed some NDAs on a few stores that have recently closed through CVAs,” Loughran said.
“We are also working closely with a number of retailers that are looking to resize their estates or to split up their big stores. There is an opportunity for us there.”
Poundstretcher recently confirmed plans to convert its entire store estate to its Bargain Buys fascia.
In its latest accounts for the year ended 31st March 2018, Poundstretcher reported sales of £387 million, down 2.5% on the previous year (£397 million). Profit after taxation declined from £2.1 million to £1.7million.
By the end of the financial year Poundstretcher operated 394 stores, having added 44 and closed 35 as it sought to close older, smaller stores and open larger branches in prominent, out-of-town sites and retail parks.
Image: James W Copeland / Shutterstock.com
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