Poundland has acquired online discount retailer Poundshop.com for an undisclosed sum as it looks to power a national roll-out of its own pilot ecommerce operation.
The deal includes Poundshop.com’s intellectual property, online platform, customer database and its picking and fulfilment operations.
Founded in 2014, Poundshop has almost 400,000 customers across the UK and employs 65 people at its distribution centre and head office in Wednesbury in the West Midlands. The site is just a few miles from Poundland’s own customer support centre in Walsall. The company has expanded rapidly and last year saw sales more than double.
Poundshop will continue to trade under its own brand in the immediate term as it benefits from Poundland’s extended range and purchasing power. Its chairman Steve Smith and chief executive Chris Maddox will act in an advisory capacity to help smooth the integration. This will be led by Poundland retail and transformation director Austin Cooke, who will also lead the day-to-day operation of Poundland’s online business.
In addition, Poundland will retain all current Poundshop staff following the acquisition and will continue to fulfil Poundshop customer orders as normal during the integration process.
Poundland plans to build on the experience of Poundshop.com to scale up its own online operation which started as a pilot in selected postcodes in Birmingham and Walsall and has now been extended across the Midlands and into South Yorkshire. It is now looking to widen its online offering by adding ranges such as PEP&CO clothing and homewares, and expanding it geographically beyond the UK with a Dealz online service for The Republic of Ireland.
