Mar 1 2022

Poundland acquires Poundshop.com to power national online rollout

Poundland has completed the purchase of online discount retail business, Poundshop.com.

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
ecommerce operation.

Founded in 2014, Poundshop.com has grown to be the UK’s largest online-only value etailer.
Poundshop.com 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.

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.
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.

Poundland will retain all of the current Poundshop.com colleagues and during the integration
process Poundshop.com will continue fulfilling customers’ orders as normal.

Run by an experienced management team, Poundshop.com has expanded rapidly and last year
alone saw sales more than double. 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 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.

Demand for Poundland’s pilot online service has been strong and has created excitement across
the country for customers eager to access the service.

Helped by this acquisition, Poundland 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.

After China and the US, the UK is the third-largest ecommerce market in the world, according to
eMarketer’s research in 2022. It has always enjoyed a high penetration of online shoppers
alongside physical retail which still accounts for the majority of sales.

The acquisition will accelerate the pace of the company’s plans to make its offer available on the
web and means customers nationwide can look forward to shopping with Poundland at the click
of a button in the near future.

The rollout of the online offer complements the opening of new stores and the expansion of
ranges – from PEP&CO clothing to chilled and frozen food – as Poundland brings value for money
shopping to even more customers at a time when every pound counts.

Barry Williams, Poundland managing director, said: “It’s great to warmly welcome the
Poundshop.com team to Poundland. 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.”

Poundshop.com sells branded consumer products priced between £1 and £5 and typically below
high street prices.

While it appeals to a broad range of shoppers and age groups, three quarters of its customers are
female, and is particularly popular with 25–44-year-olds.

Ends

Editors’ Notes

About Poundland

Since opening its first store in Burton-upon-Trent in 1990, Poundland, has built a network of over 850 stores in
the UK and the Republic of Ireland, offering top brands and great quality own brand products that provide
customers with amazing value every day.

Nominated by Retail Week as Value Discounter of the Year 2019, it now has around 18,000 colleagues who
serve over seven million customers every week from Wick to Weymouth, Londonderry to Lowestoft and
Holyhead to Hastings.

Poundland offers thousands of quality products in store with over 1,000 well-known brands in 17 shopping
categories including food and drink, health and beauty, household, gardening, DIY, pet, stationery, books,
DVDs and toys. It is on a journey from a single price to a simple price point retailer. While most items in its
stores are at its original £1 price point, it has extended ranges above and below £1 that also offer amazing
value.

Within the UK Poundland has also rolled out its fashion brand PEP&CO to around 400 of its larger stores.
PEP&CO, launched in 2015 as a standalone brand, offers customers a full range of women’s, men’s and
kids’ fashion and is now bringing new style to Poundland with simple low pricing on family fashion that’s hard
to find on local high streets.

From August 2020, the PEP&CO brand also began to power Poundland’s new homewares ranges, which
have won widespread acclaim for their style and value. PEP&CO Home brings an on-trend, contemporary,
and exclusive home and décor range to Poundland alongside a major refresh of how the products are
displayed and merchandised.

Poundland now also offers chilled and frozen food in over 250 stores, which is set to rise to over 500 over the
next two years, following its acquisition of Fultons Foods and an investment of £25m.

PEP&CO was also nominated in the 2019 Retail Week Awards as Private Label of The Year.

Part of Pepco Group which has c.3500 stores across Europe and the UK (as of 13 January 2022), Poundland
also trades internationally through its Dealz brand in Poland, Spain and The Republic of Ireland

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