Poundland is expected to break through the £1bn sales mark for the first time in its history as the discounter continues to lure shoppers looking for cheaper alternatives away from supermarkets.
Poundland has benefited from waves of bargain hunting shoppers and a shift in attitudes that has seen more middle class shoppers embracing the discount concept.
The high street chain is expected to post annual revenue of £1.1bn this week, up from £998m in 2014. Pre-tax profits are forecast to be £44m, up 20 per cent from £36.8m last year.
Poundland is pursuing an aggressive store opening programme, having expanded internationally into Spain last year and opening 60 new stores over the last 12 months in Britain. The retailer now has a British portfolio of 590 stores.
Poundland is also mulling the buyout of rival discounter 99p Stores, but has hit a stumbling block with the Competition and Markets Authority (CMA). In February chief executive Jim McCarthy expressed his disappointment that the proposed £55m buyout could be impeded over competition concerns. He said at the time that he was both “disappointed and surprised” by the intervention of the CMA.
According to PricewaterhouseCoopers (PwC) the discount general merchandise market is forecast to grow by 9.3 per cent between 2012 and 2017.