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Poundland buys pureplay discounter as it plans nationwide ecommerce expansion

Poundland says Poundshop will help it to expand across the UK. Screenshot of

Poundland has bought online discounter and says its infrastructure will help it roll out its own pilot ecommerce operation nationwide.

The multichannel discounter plans to build on experience of its new acquisition to develop and scale up its own online operation, which started as a pilot in Birmingham and Walsall and has now been extended into the Midlands and South Yorkshire. Poundland says demand for the service – which fulfils orders from one online-only store – has been strong and that it will use the new infrastructure – including Poundshop’s distribution centre with 65 members of staff – to widen its online offer. Pep&Co clothing and homewares will be added to the service, which will also extend to the Republic of Ireland, where it will launch a Dealz online service.

“It’s great to warmly welcome the team to Poundland,” says Barry Williams, Poundland managing director. “This acquisition puts power and pace behind our aspirations to make our amazing products and value available to customers across the UK and Ireland, however they choose to shop.”

Acquisition in context

Poundshop was founded in 2014 and is now a leading value pureplay, with almost 400,000 customers and 65 members of staff at a distribution centre and head office close to Poundland’s own customer support centre in Walsall. The acquisition, for an undisclosed sum, includes Poundshop’s intellectual property, its online platform, picking and fulfilment operations in Wednesbury, West Midlands and its customer database. Poundshop sales more than doubled last year as shoppers went online to do more of their shopping.

Poundland will now integrate the Poundshop operations into its own, led by Poundland retail and transformation director Austin Cooke with advice from Poundshop chairman Steve Smith and chief executive Chris Maddox.

Poundshop will continue to trade under its own brand for the moment, and will continue to fulfil orders as usual. The retailer sells branded consumer products prices at between £1 and £5, to a customer base that is three-quarters female and where 25 to 44-year-old shoppers are a key demographic.

Poundland’s online expansion comes as the retailer expands its ranges in-store, offering a wider range of Pep&Co clothing alongside chilled and frozen food. Poundland now sells from more than 850 shops in the UK and Republic of Ireland. It trades through its Dealz brand in Poland, Spain and the Republic of Ireland.

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