Unit 3 Micro - Poundland expands operations

Poundland has over 370 stores in the UK and has persued an ambitious organic growth strategy. This BBC news video “Tough economic times boost Poundland stores” looks at their expansion into Northern Ireland and now the Irish Republic under a new brand name! Naturally with Ireland being part of the Euro, they have opted not to use their original name when selling discount prices - the new trading name is Dealz!

This business is a good example to use of benefitting from extensive marketing / purchasing economies of scale in the highly-competitive discount store market.

Poundland is estimated to have a 14 per cent share of the UK’s £36bn discount general merchandise market. In the 12 months to June 2011 it made profits of £21.5million on a £510million turnover. The rapid expansion has been achieved by reinvesting the cash generated from their success rather than relying on heavy borrowing. Poundland is privately owned.