Poundland

[DAVIDW 1,683]

I see Poundland are opening in the old Virgin record shop in WheelerGate.

http://www.nottinghampost.com/Pound-shop-old-record-store/story-20233109-detail/story.html

that makes 3 Poundlands in a relatively small area . Its probably better than an empty shop but you wonder at the economics of it , taking on shops with such high rents and theres only so many customers .

Many years since I went into Nottingham but I imagine there are also 99p stores and I have seen a picture of a Poundworld in the Broadmarsh . Not to mention Home Bargains and B&M.

Poundland have just opened their 500th store and this rapid expansion could be to do with them being

listed on the stockmarket next year but I wonder who will be the first chain to fold .

Wilkos now seem to be the new Woolworths , are they still as busy ? They are still a bit of a novelty down here being relatively new stores . When we lived in Notts we often went to the Wilkos in Carlton Sq . and that was always busy but they must be suffering from all these bargain stores .

[mick2me 3,033]

Wilkos is not cheap anymore

[Bilboro-lad 294]

Wilkos are anything but cheap. Compared to Boyes they are well expensive. No cheap paint at Wilkos these days.

I wonder how much longer Poundland can stay at £1. Surely they'll end up at "Around a pound shop"?

[... 1,411]

These stores are surviving partly due to the new employee 0 hours or very few hours contract i am suspicious of these because more and more employers are using them and it seems very coincidental that at a time when tories are making people take jobs the employers are gaining massivly in that they can ajust hours to coincide with footfall at the expense of the employee these savings are not really passed on to the customer and it will make it very difficult for young people to get a mortgage or loan and i think it is fundamentally wrong. Although this could be seen has political it really is not meant in that way it is just a genuine concern for the younger generation in particular however it does affect us all.

[DJBrenton 738]

A comedian the other night came out with a great line about the unemployed being forced to do unpaid work at Poundland to increase their self-esteem.

'How good is it for your self-esteem to know that everything there is worth a pound except you?'

[DAVIDW 1,683]

Ref #3 they will be able to maintain the price point for a while yet but the pack sizes will be smaller . Don't forget they have a massive buying power and buying offices in China and will always be able to find a factory to make a non-food item at a price they want to pay .

As an example of pack sizes , when we had a discount store 3 years ago, one of our best sellers was Flex hair shampoo that we sold for a pound . Used to be 400 ml size. I noticed in 99p stores the other day its now 250ml .

[... 1,411]

Same applies to multi packs

[TGC 216]

I think the Poundland in Broadmarsh will soon be closing as it changes/modernises as an entertainment based mall as opposed to retail.

I noticed on the windows of the old Virgin store - a rent of £322,000 per annum was required. Blimey!

[Cliff Ton 10,467]

It's a growing area.

There isn't just Poundland; there's Poundworld (which is the one in Broad Marsh); Poundstretcher; and 99p stores; and probably several others I've missed.

[... 1,411]

These stores are only going to be around whilst recession is in the forefront of our minds when we feel affluent shopping habits chage and these stores are not really set up to deal with that change when your whole brand is designed on cheap and cheerful to pay those rent and rates they have to do large volume which wont be achieved when feeling is positive assuming feel good factor will one day return.

[DAVIDW 1,683]

Ref #8 and the rent of 322,000 pounds .

The article does say the unit may be split into two . They did that with the old Woolies in Newquay . Poundland took one bit and I think Peacocks had the other half.

Even so , if tbey are paying 150,000 for the rent in Wheeler Gate that will need something like £2000 per day takings just to pay the rent before you take into account all the other expenses .

[jackson 301]

I welcome shops like the 'Pound Shop' and B&M, so I'm not going to grice about another bargain shop about to be opened.

However, I am always extra careful when buying in the 'Pound Shop', as I notice some goods are marked up merely for the sake of being for sale in the 'Pound Shop'!

[TGC 216]

Ref #8 and the rent of 322,000 pounds .

The article does say the unit may be split into two . They did that with the old Woolies in Newquay . Poundland took one bit and I think Peacocks had the other half.

Even so , if tbey are paying 150,000 for the rent in Wheeler Gate that will need something like £2000 per day takings just to pay the rent before you take into account all the other expenses .

I didn't see any article on this - just read the poster in the window as I hobbled past.

But as you say, even if split, the cost of rent, wages, insurance, rates, remodelling the shop etc, sounds too excessive to make a profit surely?

I don't know how all the food outlets make it pay, they are so many of them competing nowadays - I don't even know how folk can afford to buy a fancy coffee after reading the prices.

I digress, sorry.

Cheers

[barclaycon 569]

The Poundland phonemenon seems to be based on the old adage of "pile 'em high - sell 'em cheap".

In other words making a small profit on something is sufficient if they are going sell loads.

And in a recession (yes, we are still in a recession!) they are definitely going to clean up.

But you have to be careful that you are not being misled by buying things that seems cheap, only to find that the quantity is small, or the quality is not that good.

I think shoppers now, out of necessity, are very canny and go to various different places instead of just doing a big weekly shop (which is what Tesco want you to do). A shopping list now looks more like a spreadsheet with a list of things that you want and a list of places to go for them.

I use Poundshop for certain things. For example, I used to go to Maplin for a watch battery but it's now £3.09 for one.

So maybe I'll go to Poundland for a pack of 8 instead. Shall I buy a roll of Sellotape from Staples at £2.49 ? Or shall I get a pack of 4 from Poundland. (It's only Sellotape for goodness sake).

Sad that a lot of city centres are becoming dominated by coffee shops and cheap outlets or, worst still, vacant premises.

Sign of the times I guess.

[Rob.L 1,090]

Not really that new, though. I remember Fords selling stuff at rock-bottom (especially toys) in the 60s.

And then there was Supasave on Oakdale Road, in the old Rio Cinema, which seemed to be the local forerunner of Kwiksave.

Definitely signs of the times.

[Bilboro-lad 294]

Pound shops seem to be based on the original Woolies concept. (nothing over a tanner).

[piggy and babs 544]

if you look at the space the hmv shop has compeared to the other two shops its about the same or perhaps bigger than the other two put together it may mean that the other two shops in the area will close and staff trasfeared to one shop this whould make it more economical for the company.

i too love to wonder round pound shops bm family bargins etc and see what bargains i can find over the last couple of weeks i have been out trying to find some good bargains for arnold toy run tomorrow spent about 30 quid on small gifts, not payed more that a pound for any thing best bargin bh in ripley just putting out reduce die cast car and caravan sets from 3,99 to 1.00 brought 6for less than orriginal cost for too. books craons felt tips rag dolls my not be much to most kids to to kids who will get very little on christmas day it will mean at least one extra little present for the to open salvation army will distriute these toys before christmas to local needy famiy

i have also in the last few weeks been hunting for secret santa presents for bikers christmas dinner next friday my rule is not more than 2.00 to be spent on them found plenty of good things some useful some just fun

[DAVIDW 1,683]

Don't know if they will close any shops yet . The owners , investment company Warburg Pincus probably want as many shops in the portfolio as they can. Their aim is to double the number to 1000 shops .

Next year when they float on the stock market the more shops trading in prime positions the better . This article says they value the company at 800 million which will give a whopping profit to the investment company .

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/10470023/Poundland-plans-800m-float-to-fund-major-expansion.html

[Bubblewrap 3,815]

We have a Poundland, a pound streacher & a 99p shop + a shop(Bonkers) that sells stuff a a discount price in Loughbouough and all are withih 5 minuets walk of each othert.

[poohbear 1,360]

Wilkos is not cheap anymore

Some of the medical lines in Wilkos are cheaper at my local chemist....and lets face it since when was there a chemist or a garage that didn't charge top wack for everything?

[Cliff Ton 10,467]

The former Virgin Record shop on Wheeler Gate has been empty for several years. It finally has a new occupant.

It couldn't be anything else could it........

[Bilboro-lad 294]

Virgin Record's weakness was the internet download. The pound shop is totally immune to online shopping - that's the secret of its success.

[DAVIDW 1,683]

I don't know if the pound shop is totally immune to the internet . Poundland were supposed to be introducing an on-line service this year but that seems to be drifting into next year now . It should be interesting to see how they do it.

I tried it many years ago , alongside our shop but a small concern working on such small margins can't make it pay . Despite trying to introduce a minimum spend we had too many people just ordering a couple of quids worth .

Some customers would then leave difficult delivery instructions , like "if not in , can you put it in the shed round the back" as though we were delivering with our vehicle .

Wierdly , our best seller was Bouchard Spectacle Wipes . Had regular customers for those who at the time couldnt get them elsewhere . We got them wholesale but think they were made by a Nottingham based firm .

[ChrisB 150]

So that's one on Clumber Street, one one Wheeler Gate, one down Lister Gate.

Any more?

[TGC 216]

There's one in Bulwell.