Poundshop to launch online shop
Poundland and Poundshop founder Steve Smith has announced his intention to launch an online version of the Poundshop at Poundshop.com in the next few weeks.
It will be interesting to see how the concept works online because a discount store is a finely tuned business balanced on sometimes slim margins, keeping costs tight and having impeccable supply lines. Currently Poundland has 460 stores in the UK, employees 6000 and is the biggest discount chain in Europe.
The website hasn’t yet launched, there is currently a holding page, so we can’t assess the shopping experience quite yet. But it seems like the minimum order price will be something like £23 plus postage. And that’s going to determine whether the project is a success or not.
People shop at Poundshop and other such chains for the price. If minimum order prices and postage make them expensive then it’s unlikely to do well. According to reports, they are also considering a Click & Collect service.
Steve Smith is launching poundshop.com and not poundland which he sold his stake in 2002 see this Daily Mail article.
I buy lots from Poundland every week and spending £25 or more at a time will not be a problems, because I spend that much now.
Sounds like a great idea.
Agree. I shop there and would happily bulk up an order to make a £23 minimum.
P&P will obviously be added. One report I read said £3 was under consideration. But even so, to avoid the scrum down in there, it could still be very attractive.
I question the wisdom of restricting the product range to fit the £1 price point (this applies to the high street stores as well as online).
There will be lots of products that could be sold for a bit more than £1, but would not be possible for £1. With inflation the product range will diminish over time.
And not all products that they sell at £1 are actually good value for £1.
As ever buyer beware!
Exactly- A product sold at 90p in other shops would be bad value at £1.
Some of their other products are bad value at any price. I remember buying some disposable razors from Poundworld and they were totally useless (they were perfectly safe as they were unable to cut anything, including hair). A whole industry has developed making cheap crap for the poundshops.
Its not actually accurate to say that everything in Poundland costs a Pound each. Certainly if the Truro Branch is anything to go by. Felix Cat Food (usually 58p a can in Tesco) is 2 tins a Pound in Poundland. I have noticed one or two other items which are normally between 50p and £1 in other stores that are in Poundland 2 for a Pound.
I would think that most customers of Poundland would have a reasonable idea of the price elsewhere of what is stocked in Poundland. As an example a packet of Sweets or Chocolate. Most customers are probably regular customers and know what they are in Tesco, or Sainsburys or the Co-op or whatever. They go into Poundland and there is something that usually costs say £1-49 for a Pound.
I am a great fan of Poundland for such as Walnut Whips(Packet of 3 for a Pound as against Tesco £1-49 for a packet of 3)
Its the inflation thing and prices in Poundland that I feel is going to be a problem in the future. I am not old enough to remember but wasn’t ‘Woolworths’ when it first opened in the UK that everything was either 6pence or a Shilling(for those who do not remember the old pre decimal currency there was 240 old pennies in a pound; 12 old pennies in a Shilling and your Grandfather will probably tell you that it was possible to have a good night out on a Shilling).
As we who can remember when Woolworths closed on the High Street a few years ogo there was relatively little of its stock that was still 6pence or a Shilling(or the decimal equivalents of 2 1/2 New Pence or 5 New Pence. That was the effect of inflation over many years(and also of increasing the stores product range).
I wonder if in say 10 years Poundland(and the other similar stores selling at £1 or 99p) will be able to hold their prices. Or will they perhaps do as many suppliers do and make the packets smaller while keeping the same prices.
Inflation won’t be an issue. They will mark items up as either £1 or £2 or whatever whole pounds are required to maintain the ethos of simple to understand pricing.
ebay could learn a thing or two from Poundland about keeping it simple!
Surely inflation is exactly the long term problem. Currently the Philosophy of Poundland is everything for a Pound(although some items are 2 for a Pound-and I quoted previously Felix Cat Food. I have also noticed a few 3 for £2 items in Poundland in Truro.
However as the years roll by there will be increasing price pressure on Poundland caused by year on year inflation. They will be able to keep it slightly under control by careful buying policies. In this regard I notice a disproportionate number of items that are obviously Manufacturers Special Offers(Their Lucozade always seems to be Special offer packs). They can buy in smaller pack sizes. An example of this is in regard to Mars Bars and some other Sweet and Chocolate Products. Where normally multipacks contain 4 off but in Poundland their pack sizes are 3 off(recently I noticed the same 3 off Mars Bars packs in Tesco where previously they only sold 4 off pack sizes). They can also buy in smaller containers. As an example of this I noticed tins of Soups in Poundland are invariably a smaller size than is normal in most Supermarkets.
But no matter what they do in the long term Inflationary Pressures will grow until they have to increase the prices from a general £1 per item to perhaps a general £2 per item. That is what inflation is and in my earlier posting I mentioned ‘Woolworths’. Over the years their original policy of 6 pence or a Shilling for items was destroyed by inflationary pressures.
In regard to products. Obviously if it is a Branded Product and I have mentioned several that certainly the Poundland Branch in Truro sells customers should be safe. After all if Poundland were stocking fake Mars Bars then you can expect Mars Solicitors to be rapidly on the case. But if you buy unbranded products anywhere, not only in Poundland, there has to be a chance that the product is rubbish(such as Blunt Disposable Razors)
Surely the rule is the same as if it is bought anywhere. If the product you buy is rubbish take it back and complain. It may be that Poundland don’t realise that its rubbish. Once it is brought to their attention perhaps they will do something about it.
I have to go to Truro later today and I will be shopping in Poundland for several items I have bought there previously and have been very happy with. But the rule as it is everywhere ‘Buyer Beware’.
In the East End shop everythings a paaand and the shampoo is pantene.
Actually, 99p stores are reasonable value & get some different lines too….
When is ebay going to provide the option of minimum order values?
I have minimum order values on the website and this inevitably means several low value items are purchased together if those are the type of things the punter is after. Amazon have set £10 as a threshold for free shipping. Why can’t ebay come up with something?
eBay sellers can set whatever value they like as an order total value threshold for free shipping. Have you tried it?
Thank you for the heads up on this. I had completely overlooked this feature. All my listings which are not “Free shipping” now have a BIG header at the top FREE STANDARD DELIVERY WHEN YOU BUY 3 OR MORE which looks impressive and should focus the buyer just a teeny weeny bit more. Very pleased with ebay on this occasion although be interesting to see how the fees work out on 3 or more basket purchases. I would much rather ship 3 items for “free” than 1 item shipping paid.
Pity I don’t get premium status when offering this. Ebay should consider offering premium status and discounts to all sellers and on all items where there is a “free shipping” multi buy offer and when this is taken advantage of by the buyer.
That’s great news. Click and Collect would be good looking at number of stores they own.
Effectively this multi buy free shipping offer thing means that my buyers have to spend a minimum of around £21 based on my lowest value items so I have pretty much achieved through this workaround the minimum order value I want through this incentive, If buyers want a lower value order then they will simply have to pay the shipping. Thank you JD. Be interesting to see how it works.
Gary – good luck with your trial.
All my stuff is low value and generally costs the same to post for 20 as for 1.
I have set my threshold at £25 worldwide.
eBay generally gets it right when the buyer pays.