Poundland, which trades here as single price retailer Dealz, has said that due to the success of the retail brand in Ireland, it now plans to roll out the business into Spain.
Poundland issued a statement last week confirming that it is to proceed with an initial public offering (IPO), in which it announced its plans to grow the Dealz brand.
'Building on the success of the Dealz format, Poundland is preparing for a pilot launch in Spain under the Dealz brand in the 2015 financial year,' the statement read.
Up to ten stores will be opened in Spain over a two-year period, with the statement also noting 'the directors expect that there will be significant brand and supplier overlap with the Dealz product base in Ireland'.
On the brand's Irish expansion plans, the statement said that the group plans to open around six new stores per annum over the next three years, out of a total of 60 stores per annum in both Ireland and the UK.
'In addition, the Directors believe, supported by external research conducted by Javelin Group, that there is potential for more than 70 stores in Ireland,' it said.
Poundland entered the Irish market in September 2011, and currently operates 31 stores here. Given the higher price point in its Irish stores (€1.49 compared to £1 in the UK), the group said that 'Dealz has a higher gross margin than Poundland’s gross margin in the UK. Dealz has been profitable since its first full year of operation'.
"Our success in Ireland - where we trade under the Dealz fascia - demonstrates that we have the capability to generate positive financial returns in new geographies quickly and underlines the potential in the business for further international growth in addition to our plans for continued rapid growth in the UK," commented Jim McCarthy, Poundland chief executive.
Announcing its IPO plans, Poundland announced the appointment of four new non-executive directors: former Sainsbury's CFO Darren Shapland, Trevor Bond of Mondelez International, Tea Colaianni of Merlin Entertainments, and Grant Hearn, former chief executive at Travelodge.
© 2014 - Checkout Magazine by Stephen Wynne-Jones