Discount retailer Poundworld has appointed administrators, putting 5,100 jobs at risk.
www.bbc.co.uk/news/business-44436435
I've only ever been in one of their shops, the one in Regent Street, Swindon. Ironically it used to be the old Woolworth's store, IIRC. The rear end of the shop had the "more than a £1" range of items.
Shelves always used to be full to the rafters, helpful staff, hardly any waiting at the tills, but this past year it was completely the opposite. It wasn't worth going in as more often than not they didn't have what I wanted. Poundland is only a few yrds down the road and is always well stocked.
Whilst Poundland seems to be able to manage quite well (and also the likes of B & M, and Home Bargains.), it would seem that Poundworld cannot, despite all selling similar items. Wonder how they got it so wrong?
EDIT - Hmmm, it would seem that Poundland in Regent Street, Swindon is also closing. Maybe they're not doing that well either.
Last edited by: VxFan on Mon 11 Jun 18 at 13:13
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so how come this isn't being sold for a pound like Bunnings and BHS was?
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I was in one of their shops this morning, the shelves were looking very low on stock. The original owner sold out when he saw problems looming.
Last edited by: Old Navy on Mon 11 Jun 18 at 13:33
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>> Whilst Poundland seems to be able to manage quite well (and also the likes of
>> B & M, and Home Bargains.), it would seem that Poundworld cannot, despite all selling
>> similar items. Wonder how they got it so wrong?
As noted chain was sold last year. Wonder whether sale loaded it with debt?
Equally business rates are going up as (rightly) is living wage. Rents are another possibility; deals that looked as good as you'd get 10yrs ago are now a millstone to the neck.
Too many shops competing in the £1 and general discount market.
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I was in Germany last week, they have both Woolworths and C&A branded shops, names that dissapeared from our high streets long ago. Woolworths in Australia are a food supermarket chain.
Last edited by: Old Navy on Mon 11 Jun 18 at 14:25
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> I was in Germany last week, they have both Woolworths and C&A branded shops..
I designed and configured the communications network for C&A's UK operation. The POS terminals in the stores communicated with the distribution centres to report sales and automatically re-order stock. The distribution centres reported sales and stock levels back to the mainframe in Holland.
Unfortunately that's where things appeared to fall apart. The system would report back that "We've sold 2,000 of these shirts in size XL, 200 in size L, 20 in size M and 0 in size S". What arrived on the truck a few days later was complete pot-luck though.
I suspect that what arrived in the UK was whatever they had left over after fulfilling orders nearer home. No wonder they pulled out.
It was a bit like when Mrs K. and I were first sent to establish a missionary presence in southern England. We had to go to either Guildford or Reading for clothes shopping because the shops in Basingstoke were selling T-shirts in November and woolen overcoats in May.
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because the shops in Basingstoke were selling T-shirts in November and woolen
>> overcoats in May.
It cuts down on the shoplifting.
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>> Too many shops competing in the £1 and general discount market.
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That's about it. Haverfordwest, a not exactly large town has four of these discount shops (One being Poundworld) plus a Wilkinsons.
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I remember watching a series on the bloke who built Poundland up from a market stall to big business, with his mum. I see on Wikipedia he sold a majority stake to TPG for £150m in 2015 and is now the only serious bidder fo the chain.
en.wikipedia.org/wiki/Poundworld
Smart cookie!!
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Landlord rents are a huge issue for the High St nowadays. For landlords in town centres where footfalls are declining, they realise that they have a reducing asset and probably within the next few years their expected income will dramatically fall.
The likes of Poundland etc thrive on selling items that shoppers arent going to go online to try and get cheaper, witness the customers walking round with their wheeled baskets lobbing stuff in without a second thought.
Of course, they need to turnover huge volumes of low margin stock but then rivals open up doing the same thing two doors down........
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>> I remember watching a series on the bloke who built Poundland up from a market stall to big business, with his mum.
I think you mean Poundworld. I watched it too. Narrated by Caroline Aherne IIRC.
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C & A? We always called it coats and 'ats.
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We called it something else, but the thread would be deleted and I'd be banned.
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Pound to a penny that Poundworld is saved.
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>> Pound to a penny that Poundworld is saved.
And probably for £1.
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Reported in the press that a key issue is the falling value of the Pound against the foreign currencies used to buy the stuff they sell.
Of course Brexit has nothing to do with the Pound being equivalent to $1.48USD on 22nd June 2016 and $1.34 yesterday. Euros were 1.31 and are now Euros 1.14.
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And the pound was too strong. You can't have your cake and eat it.
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The entire retail concept of a "pound" store is by its very nature time limited. Inflation alone ensures its a short concept.
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>> The entire retail concept of a "pound" store is by its very nature time limited.
>> Inflation alone ensures its a short concept.
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I notice they are now doing multiples, prices in the four bargain stores in Haverfordwest (One of who is Poundworld) are £1, £2, and £3.
I got a head torch for a quid on Saturday, much better than the one I paid a fiver for a few years ago.
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Poundworld enters administration - Zero
