Poundland expanding: reflections on quality and the recession
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I’m looking round for pieces of evidence that students could use to judge the state of the economy and where it’s heading (hopefully trying to avoid a ‘double dip’ recession), so I was interested to see that Poundland are growing their business. Whilst watching an accompanying video clip, I also noticed the firm’s boss making observations about the concept of quality: something that crops up as a frequent Business Studies discussion point.
Discount retailer Poundland plans to open 50 new stores in a move it says will create up to 2,000 jobs. The BBC reports that the chain of 263 stores which sell everything for £1 said tough economic times meant more shoppers were flocking through its doors. Poundland on Wednesday posted annual operating profits up 81% to £21.5m, on turnover up 28.7% to £509.8m.
The firm opened 56 outlets during the last financial year, many of which are based at former Woolworths stores. The boss said that a similar number of new stores would open this year, and he believes Poundland could have 800 outlets within the next few years.
“Market research shows… we have several more years of growing,” he said. The chain is gradually increasing the average size of its stores, and also stocking more branded items and food. What do this tell us about the economy and consumer behaviour at the moment?
Watch the clip and see if you agree with the statement that Poundland sells good quality products.
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