The high street value channel has experienced outstanding growth this year. We reflect on the progress of the UK's high street value discounters over the last quarter and how they are setting themselves up for further growth in 2015.
Poundworld invests in IT
Single-price retailer Poundworld has begun a 10-month investment programme in its IT systems as it prepares to double its estate in the next five years to take its total store count to over 500. The first phase will concentrate on the customer-facing systems which will benefit the shopper experience, while the second phase will focus on central management, automation and the retailer's reporting infrastructure.
Poundland opens flagship depot
In November 2014, Poundland opened its new flagship distribution centre in Harlow, Essex, which will support the discounter's growth plans, both in the UK and in Europe. This significant investment in Poundland's infrastructure will enable it to offer new product ranges, while also improving availability and automatic store ordering. Poundland has a long-term target of 1,000 stores in the UK, while also expanding its Dealz fascia in both Ireland and Spain.
B&M opens 400th store
The last quarter saw B&M open its 400th store in the UK, with the aim of opening 50 more stores by the end of the financial year, and a total estate of 850 stores. B&M has announced plans to open another distribution centre in Speke, Liverpool, and in 2015 will add an additional centre in the South to cater for its growth as the retailer looks to acquire sites, potentially from Mothercare and Homebase.
99p Stores creates convenience offer
Further discounter expansion plans have been revealed by family-owned 99p Stores in the last quarter with the business aiming to open an average on 50 stores per year for the next three years, giving a total of over 400 stores by 2017. The discounter recently opened its 250th store in Northampton which features a food-to-go section and bakery, significantly improving its convenience offer.
Home Bargains targets retail parks
The discount chain owned by TJ Morris continues to open stores at pace, in line with the other high street discounters. The latest Home Bargains store opening in a retail park in Byfleet shows how the discounter continues to target retail park locations, increasingly becoming a favoured site for all value discounters. It also shows how Home Bargains, and other high street discounters, are developing their nationwide footprints.
To read the latest report on high street discounter trends, click here
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