The discounter noted, that the acquisition of Poundshop.com for an undisclosed sum, is another step in the transformation of Poundland and will provide the infrastructure to power a national roll-out of its own pilot e-commerce operation.
Helped by this acquisition, Poundland highlighted that it plans to widen its online offer, both in terms of ranges, adding PEP&CO clothing and homewares, and geographically, including extending beyond the UK and offering a Dealz online service for The Republic of Ireland.
Barry Williams, managing director, Dealz & Poundland said, "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.”
Online-Only Value Retailer
Founded in 2014, Poundshop.com has grown to be the UK’s largest online-only value retailer.
It has almost 400,000 customers across the UK and 65 colleagues at its distribution centre and head office in Wednesbury, West Midlands, just a few miles from Poundland’s own customer support centre in Walsall.
According to the company, the deal includes Poundshop.com’s intellectual property, its tried and tested online platform, the picking and fulfilment operations in Wednesbury and its customer database.
Retail Website Staff
Poundland highlighted that it will retain all of the current Poundshop.com staff and during the integration process the online store will continue fulfilling customers’ orders as normal.
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 in turn will lead the day-to-day operation of Poundland’s online business.
Run by an experienced management team, the retail website has expanded rapidly and last year alone saw sales more than double, the company noted.
It will continue trading under its own brand in the immediate term and will benefit from Poundland’s 'extended range and purchasing power to bring customers even more choice and value.'
Poundland noted 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.