Poundland Gets Richer

Private equity company Warburg Pincus has been chortling away this week. 

Through its 2010 investment in discount store chain Poundland, Warburg Pincus helped transform Poundland into the largest single-price value retailer in Europe by both sales and number of stores. In partnership with management, Warburg Pincus almost doubled store numbers in the space of four years, attracted new types of customer and supported the company’s move into Europe.

The company operates under the “Poundland” brand in the UK, where it sells branded and own label products at the single price point of £1, and under the “Dealz” brand in Ireland, where it sells the vast majority of its products for €1.49. Poundland opened its first store in 1990 and has grown to operate a network of over 500 stores across the UK and Ireland, with a long-term target of operating over 1,000 stores in the UK. In 2014, Poundland floated on the London Stock Exchange

The retailer claims that their Croydon store is the busiest single-priced discount outlet in the world, generating more than £9 million in revenue per year with 30,000 customers a week The company estimates it serves 2.75 million customers in an average week.

In February 2013, Cait Reilly, won her case that her local Jobcentre had breached benefit laws by insisting that she work at Poundland to maintain her unemployment benefit payments. The government had to redraft its legislation on the so-called "sector-based work academy" after losing the case. Reilly called her two weeks working unpaid at Poundland "a complete waste of my time".

Poundland has courted controversey on other occasions. A ban on staff wearing Poppys had to be recinded after public protest and according to Wikipedia, Poundland were previously fined £24,000 following an investigation of a store in Croydon, London. Customer complaints had been received by the local council, and inspectors allegedly found that hygiene was poor, the store had a widespread mouse infestation and that food which had been contaminated by mice chewing open the packaging and leaving droppings and urine inside, were then re-sealed and sold to the public. During the trial Poundland admitted failing to withdraw food unfit for human consumption, not protecting food from contamination, failing to control mice and failing to ensure the store was well maintained and clean. Additionally they admitted to failure to implement and maintain its own food safety management system.^[

In June 2015, Poundland were fined £10,000 following an investigation by Islington Council of a store in north London. Evidence of a widespread mouse infestation and that the company had failed to take appropriate action to remedy the situation was presented in court.