This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.theguardian.com/business/2014/nov/27/poundland-profits-brits-thrifty-habits

The article has changed 4 times. There is an RSS feed of changes available.

Version 0 Version 1
Poundland profits rise as Brits’ thrifty habits continue Poundland profits rise as Brits’ thrifty habits continue
(about 1 hour later)
Poundland’s profits rose strongly in the first half as the budget retailer capitalised on the post-recession thriftiness that is transforming Britain’s retail market. Poundland’s boss said he was confident about the company’s first Christmas as a public company as the budget retailer capitalises on the post-recession thriftiness that is transforming Britain’s retail market.
Pretax profit for the six months to 28 September increased by 11.7% to £9.3m as sales at stores open a year or more rose 4.7%. Profit excluding one-time items surged by 34% to £12.6m on total sales up 15% to £528m. Jim McCarthy said pre-Christmas sales of cards and wrapping, confectionery and batteries were strong and that customers had reacted well to Poundland’s festive range. Poundland makes about half its profit in the final three months of the calendar year.
The company, which listed on the stock market in March, said it was confident about the rest of the year as it prepares for its first Christmas as a public company. “We had a good Christmas last year and we plan for a good Christmas this year,” McCarthy said. “Takeup from customers has been good so we are pretty confident about it.”
Poundland, which sells its products for £1, is gaining from hard-pressed consumers shopping around and turning to value retailers they would not have considered before the recession. The trend is shifting power on the high street, most noticeably as Aldi and Lidl take business from the big supermarkets. Boxes of Just Brazils, three-packs of Nestle Walnut Whips and the chain’s own-brand makeup are all selling well, McCarthy said. Pretax profit for the six months to 28 September increased by 11.7% to £9.3m as sales at stores open a year or more rose 4.7%. Profit excluding one-time items surged by 34% to £12.6m on total sales up 15% to £528m.
Jim McCarthy, Poundland’s chief executive, said: “As the structural changes in UK retail continue to redraw the landscape, we are building our reputation for offering amazing value every day to our customers and substantially broadening our appeal. While our full year outcome, as always, is dependent on delivering a good Christmas for our customers, I remain confident of further progress throughout the year.” Poundland was one of a series of retailers that joined the stock market in a frenzy of new listings early this year. Its shares fell below their 300p float price in May but have since edged back into positive territory. The shares rose 3% to 319p.
Poundland shares rose 1.6% to 315p. Poundland, which sells all its products for £1, is gaining from hard-pressed consumers shopping around and turning to value retailers they would not have considered before the recession. The trend is shifting power on the high street, most noticeably as Aldi and Lidl take business from the big supermarkets.
The company said upmarket consumers were increasingly shopping at its stores and that manufacturers were keen to produce products to meet its pricing requirements. It plans to open 60 stores in the UK and Ireland this year and to expand its Dealz operation in Spain, where soaring unemployment has left consumers short of cash. McCarthy said upmarket consumers were increasingly shopping at Poundland, whose makeup was reviewed by Vogue, and that manufacturers were keen to produce products to meet its pricing requirements. It launched its first celebrity-linked products this year by teaming up with Jane Asher for a bakeware range.
Poundland was one of a series of retailers that joined the stock market in a frenzy of new listings early this year. Its shares fell below their 300p float price in May but have since recovered. “The [discount] sector is performing strongly and other parts of the retail sector less so. That is about consumer behaviour. Increasingly consumers have been pleased to buy products that previously they were paying more for at other retailers and we think Poundland is positioned to take advantage of those changes in consumer shopping behaviour.”
Poundland plans to open 60 stores in the UK and Ireland this year and to expand its Dealz operation in Spain, where soaring unemployment has left consumers short of cash.