The deal between Poundland and Poundshop.com will see the high street retailer power a national online rollout.
The deal for the online discount retailer includes Poundshop.com’s intellectual property, its online platform, the picking and fulfilment operations in Wednesbury and its customer database.
Retail Gazette reports that the acquisition is another step in the transformation of the discount giant and will provide the infrastructure to power a national roll-out of its own pilot eCommerce operation.
Since it was launched in 2014, Poundshop.com has grown to be the UK’s largest online-only value etailer with almost 400,000 customers across the UK and 65 colleagues at its distribution centre.
Poundland said that Poundshop.com chairman Steve Smith, and CEO Chris Maddox will act in an advisory capacity to help smooth the integration which will be led by Poundland retail and transformation director Austin Cooke, who will lead the day-to-day operation of Poundland’s online business.
Poundland also stated it will retain all of the current Poundshop.com colleagues and during the integration process Poundshop.com will continue fulfilling customers’ orders as normal.
Poundshop.com has expanded quickly in the last year alone, and saw sales more than double. It will continue trading under its own brand in the immediate term.
Poundland told Retail Gazette that it plans to build on the experience of Poundshop.com to develop further and scale up its own online operation which has started as a pilot in selected postcodes in Birmingham and Walsall and has now been successfully extended across the Midlands and into South Yorkshire.
The retailer plans to widen its online offer in terms of ranges and geographically, including extending beyond the UK and offering a Dealz online service for The Republic of Ireland.
Barry Williams, Poundland managing director, said: “It’s great to warmly welcome the Poundshop.com team to Poundland. 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.”