Company name: Poundworld Retail
What they do: Discount retailers
The boss: The Edwards family
Latest turnover (£,000): 132,944
Four-year compound sales growth (%): 38
Latest Ebitda (£,000): 7,802
You would think that inflation is the biggest threat to the pound shop industry. Not so, says Martyn Birks, a director at Poundworld Retail whose sales have increased nearly £40m in the space of a year: “Inflation won’t be a problem for a long time,” he says, “a lot of manufacturers cater for the one pound industry and if prices go up then they respond to keep finished goods within budget.”
The Poundworld empire, like the industry it thrives in, is soaring in the economic turbulence of 2012. Consumers are cutting back and bargains are more sought after than ever.
The chain opened its one-hundredth outlet a year ago, yet today already has 160 stores. There are plans for another 60 shops this year too. As well as economic uncertainty, the demise of Woolworths helped to redirect price-conscious customers’ attention.
Birks says the business’ strategy is to grab the attention of these thrifty shoppers with a targeted marketing strategy. “Our shops are extremely well represented, there are a lot of copycats that can’t offer the same slickness,” he says.
The Hot 100 2012 is brought to you by Investec, Jordans, Cass Business School and Your Business Your Future.
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