The single-price discount retailer, which currently does not advertise, is opening about 50 new stores each year. It recently reported an 81.5% increase in profit to £21.5m for the year ending March. Sales increased 29% to £509.8m.
Poundland CEO Jim McCarthy says the company plans to launch an above-the-line advertising campaign when it reaches a “critical mass” of about 400 stores on the high street.
There are currently 295 Poundland stores and McCarthy believes there is scope for 800.
McCarthy says Poundland has previously relied on a word-of-mouth marketing strategy because of the strength of its single price proposition, adding: “We don’t yet have the critical mass to do significant above-the-line advertising. But when we do, our advertising and marketing will take a different direction because the scale will be different.
“We will ’unleash the beast’ into above-the-line advertising and bring our message to consumers in a way that we haven’t been able to afford to before,” he says.
The retailer also plans to launch a transactional ecommerce website offering a selection of its products “when the time is right”.
“Right now we’re focusing on the bricks and mortar business but there is significant value in taking certain categories, such as fancy dress and party products, online.”
Poundland carries more than 1,000 branded lines and is introducing products such as milk, bread and sugar to its range to “give consumers access to foods and household products on the high street”.
The chain is also diversifying its store portfolio, with larger stores in out-of-town retail parks.