Poundland to take over the High Street
Before Poundland become a pound universe, both businesses have to clear everything with the Competition and Markets Authority where the regulator might ask for some stores to close down, so there's room for the competition to exist.
To make it clear, this takeover will see Poundland having more shops on the High Street than WH Smith and bigger than Lidl and Aldi.
Poundland's Jim McCarthy said: "This is a good deal for both businesses and will benefit customers and shareholders. Through working together, Poundland will improve choice, value and service for 99p Stores’ customers, bringing Poundland’s proven know-how and range to 99p Stores."
"We also believe that we can improve the performance of the 99p Stores estate and generate further value for Poundland’s shareholders. We look forward to working with the CMA as it undertakes its review."
Since the economic downturn, pound shops have been doing a roaring trade and Poundland are the ones who have really made hay while the sun shone (or, if you prefer a gloomy analogy, had the best umbrella while the rain fell) and shares have gone up at this announcement.
Over Christmas, Poundland saw sales shoot-up by 9.8% to £328.4 million, and now, they're only going to be more present in the nation's weekly shops.
TOPICS: High Street News