NEWS

Poundland blames quiet high streets for disappointing sales

Published on: 8th January 2016

Shares in Poundland fell more than 10% after it warned profits will be at the lower end of forecasts for the year.

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A quieter high street scene was blamed for the slump, which could not be averted despite Poundland’s acquisition of fellow discount retailer 99p Stores.

The Telegraph reported how Poundland said overall sales were up 29.4% in the 13 weeks to 27th December compared to last year, as its purchase of 99p Stores boosted revenues to £424.9m.

Poundland’s existing stores contributed 9% points of the overall increase, while the 99p Stores made up 21.1 percentage points.

However, a decline in footfall on the UK’s high streets meant the performance was not as strong as hoped.
The firm said profits for the year to March were likely to be at the lower end of market forecasts of between £39.8m and £45.8m.

A Poundland spokesman said: “UK high street footfall remained below last year and this has impacted our overall sales growth.”

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