Discount retailer Poundland has delivered strong sales over Christmas as cash-strapped consumers turned to cheaper stores for bargains. Its like-for-like sales rose 3.9% over the five weeks to January 4.
With the inclusion of new stores, total sales rose 24.3% year-on-year. The retail chain, which sells everything for £1, says it attracts more than 2 million customers a week.
The worsening economic environment is proving to be a boon for retailers occupying the value end of the market. Last week, clothing chains Peacocks and New Look also reported robust Christmas sales.
Poundland is planning a “significant” expansion of new stores this year, adding up to 30 outlets and creating 1,000 new jobs. It currently has more than 200 stores and employs 6,400 staff.
Jim McCarthy, the chain’s chief executive, says: “We are well positioned to capitalise on the continuing strong customer trend to shop savvy and seek value for money.”
Poundland’s stella performance comes as analysts predict that Tesco will report its weakest Christmas sales for 16 years tomorrow (January 13). It is expected to post a marginal like-for-like sales rise of around 2.5% for the period.
Meanwhile, in other results, footwear retailer, Office has reported a 5.4% rise in like for-like sales in the six weeks to January 4.