Poundworld
 | |
| Industry | Retail |
|---|---|
| Founded | 1974 |
| Founder | Christopher Edwards Sr. |
| Headquarters | Normanton, West Yorkshire, England |
Number of locations | 358 |
| Products | Grocery, general merchandise |
| Owner | TPG |
Number of employees | 6000 |
| Website | Poundworld.co.uk |
Poundworld is a British value variety store that sells most of its items for £1.[1] The chain was founded in 1974 by Yorkshire-based father and son team Chris Edwards Sr. and Chris Edwards Jr.[2]
In contrast to many high-street retailers,[3] Poundworld maintained strong sales and growth during the global recession that started in 2007.[4]
Poundworld's product range consisted of over 6,000 items including groceries, health and beauty, toiletries, cleaning products and pet care,[5] some of them known brands;[6] it has over 6,000 employees[citation needed] and over 340 stores in England, Wales, Scotland and Northern Ireland; and it was planning to open 150 new stores within three years.[7]
Its larger rival in the market is Poundland. BBC Two series entitled Pound Shop Wars, broadcast between 2012 and 2015, focused on Poundworld and its rivals.
History
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The chain originated in 1974, when Chris Edwards Sr. set up a market stall in his home town of Wakefield.[8] Edwards initially set up a multi-price store called "Bargain Centre", before switching to a single-price format in 1997, trading as "Everything's £1".[9]
Since the recession that started in 2007, Poundworld has expanded rapidly.[10] Its sales grew by 42% in 2010-2011,[11] and increased by 55% with revenues of £200M in 2012.[10] Its expansion meant that the company required larger premises, and it relocated its head offices to the largest unit in Yorkshire's main warehousing and distribution base.[12] It also opened an overseas office in Shanghai during this period.[13]
In October 2013, Poundworld partnered with the Marie Curie Cancer Care charity, which it had already supported during 2013's Great Daffodil Appeal.[14]
In November 2013, Poundworld opened its first multi-price retail store under the Bargain Buys name in Walsall.[15] Bargain Buys was originally and briefly traded as Discount UK, with the name change allowing the chain to compete more closely with its rivals in the market.[15] The company planned to open a further 100 stores in the next 3 years.[16]
In mid-2014 the store secured a £26m loan from Santander to finance its stated aim of increasing its approximately 240 stores by 40 or 50 a year for the next three years, and to strengthen its overseas supply chain from where about 30% of its supplies are sourced.[7]
In 2014, The Advertising Standards Authority (ASA) ruled that Poundworld's "Everything £1" slogan was misleading, as some items were priced at up to £8.99. Poundworld stated that the products in question were 'Manager Specials' and were only run at Christmas and occasionally throughout the year.[17][18]
The Edwards (father and son) were placed at number 12 in Management Today's annual list of Britain's Top 100 Entrepreneurs in October 2014.[19] In the same month Poundworld Retail was named one of the UK's fastest-growing retailers in the Sunday Times Grant Thornton Top Track 250.[20]
On 15 May 2015 the company announced that it had sold a majority stake in the business to US private equity firm TPG for £150 million,[21] with Christopher Edwards, his son, and other senior executives retaining a substantial minority holding, allowing the family to maintain the day-to-day running of the business.[22] Poundworld announced that the investment from TPG would allow the business to grow, with further plans for store expansion.[23] Shortly after the deal, the company announced that it had begun construction of a new distribution centre in Normanton as part of a plan to create 4,000 jobs and open a further 200 new stores in the next 3 years.[24][25]
Online
In May 2012, the company launched a wholesale website, targeted at market traders, eBay sellers and independent retailers.[26] The website offers over 2,000 products including cleaning, DIY, stationery and pet care.[27] Since launching online, the operation has seen a sales increase of 400%.[28]
The company followed this in February 2014 by launching a retail online pound store named poundshop.com.[29] Poundworld supplied stock and product images for the single-price website – the first of its kind. However, Poundworld decided to leave the project after 6 months, citing "a failure to reach a shared vision" with Smith.[30] It launched another online shop in April 2015: Poundworld Plus,[31] offering over 4,000 products, all at £1.[32] It later changed the website name to Poundworld.co.uk.
Notable products
In 2013, Poundworld launched a comfort bra priced at £1.[33] 100,000 were bought in a few hours.[33]
In 2014, the company started selling a range of merchandise relating to the 2013 Disney film, Frozen.[34] At Poundworld's new store opening in Merthyr Tydfil in October, people waited for over an hour before it opened, with fights breaking out as stocks ran low.[35] There were similar crowds at the new Nottingham store in November.[36]
Pound Shop Wars
In 2012, the company was the subject of a BBC documentary series, Pound Shop Wars, that focused on the competition between Poundworld and its rivals.[37] After the initial hour-long pilot, the four-episode series was broadcast in early 2014.[38] A second series of 8 episodes was screened in autumn 2015.[39]
References
- ^ "Poundworld leads the charge as single-price discounters lift off". thegrocer. 2012.
- ^ "Poundworld Father And Son Entrepreneurs Head Yorkshire Contingency In MT Top 100 List". bdaily.co.uk. 2014.
- ^ "Comet's collapse and other post-recession retail failures". Telegraph Media Group. 2012.
- ^ "Pounding way out of recession". Johnston Press. 2011.
- ^ "Categories Poundworld". poundworld.co.uk. 2014.
- ^ "No wonder the middle classes are invading pound stores: From Balsamic vinegar and bird tables to spectacles and a range of pillows, they rival even John Lewis". Associated Newspapers. 2014.
- ^ a b "Poundworld to fund expansion with 26M loan package". The Grocer. 2014.
- ^ "King of the bargains eyes bonanza". Times Newspapers. 2012.
- ^ "Bargain Chain Poundworld Opens New Store". Newsquest. 2014.
- ^ a b "Sales pass £200m at expanding Poundworld". Newsco Insider Limited. 2012.
- ^ "Could It Be Magic No Just Hard Work Says Thriving Poundworld". The Grocer. 2011.
- ^ "Poundworld looks for space to grow". Johnston Press. 2010.
- ^ "Interview: Chris Edwards, Poundworld". How Did They Do It. 2013.
- ^ "Poundworld Launches Campaign For Marie Curie". Newsquest. 2013.
- ^ a b "Bargain Buys is new face of Discount UK". The Grocer. 2013.
- ^ "New Bargain Buys fascia creates 80 jobs". M.E.N. Media. 2013.
- ^ "ASA Ruling on Poundworld Retail Ltd". Advertising Standards Agency. 8 October 2014. Retrieved 13 March 2016.
- ^ "Poundworld's 'everything £1' claim banned by watchdog". Telegraph Media Group. 2014.
- ^ "Britain's Top 100 Entrepreneurs 2014: No. 12 - Chris and Chris Edwards, Poundworld". Haymarket Media Group Ltd. 2014.
- ^ "Latest News". Poundworld Retail Ltd. 2015.
- ^ "Poundworld sold to US firm for £150m - bbc.co.uk p.15 May 2015". Retrieved 16 May 2015.
- ^ http://www.express.co.uk/finance/city/577393/150m-buyout-inflate-Poundworld
- ^ http://www.theguardian.com/business/2015/may/14/high-street-chain-poundworld-sells-majority-stake-to-us-investors
- ^ http://www.bbc.co.uk/news/uk-england-leeds-33463515
- ^ http://www.thegrocer.co.uk/channels/discounters/poundworld-to-add-200-new-stores-nationwide/521347.article
- ^ "Poundworld hails launch of its discount wholesale website". The Grocer. 2012.
- ^ "Discount Wholesale – Poundshop Supplier and Wholesaler UK – ITP Imports". 2014.
- ^ "Sales up 400% for Poundworld's Discount Wholesale Website". The Grocer. 2013.
- ^ "Poundworld launches online store poundshop.com this week". The Grocer. 2014.
- ^ "Poundland founder's online venture suffers blow as partner quits". Guardian News Ltd. 2014.
- ^ http://www.mirror.co.uk/money/poundworld-launches-online-shop-bargains-5555765
- ^ http://www.theretailbulletin.com/news/poundworld_unveils_ecommerce_website_20-04-15/
- ^ a b "Would you wear a £1 bra? Poundworld launch world's cheapest bra . . . and say MILLIONS of cash-strapped women will snap it up". Associated Newspapers. 2014.
- ^ "Disney's Frozen: Merchandise coming to Nottingham Poundworld". Local World. 2014.
- ^ "Let it go...or maybe not. Women seen fighting over Disney's Frozen merchandise at opening of new Poundworld store". Media Wales. 2014.
- ^ "Poundworld swamped by crowds of desperate parents as Frozen merchandise goes on sale for Xmas - and sells out TEN MINUTES". Associated Newspapers. 2014.
- ^ "BBC One – Pound Shop Wars". BBC. 2014.
- ^ "Pound Shop Wars (4 x 30' Series)". Zodiak Rights. 2014.
- ^ "Nine Lives Media". Nine Lives Media. 2014.
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