page_title: Poundland
section_title: Competition
hierarchical_section_title: Poundland / Corporate affairs / Competition
caption_attribution_description: English: poundworld - Carlton St
context_page_description: Poundland is a British variety store chain founded in 1990, selling most items at the single price of £1, including clearance items and proprietary brands. The first pilot store opened in December 1990 following numerous rejections by landlords who had reservations about allowing a single-price store to operate, fearing it could adversely affect the local competition. An estimated 7 million customers shopped in Poundland every week in 2016, many being female shoppers in the C1, C2, D and E categories. Following a drop in share price of over 50%, Poundland was acquired in August 2016 by Steinhoff International for £610m.
  The retailer expanded into Europe during the latter half of 2011, first opening a store in the Republic of Ireland and later operating a subsidiary chain of discount stores in mainland Europe under the name Dealz. Poundland acquired closest rival 99p Stores in 2015, which left Poundworld as their closest competitor until it went bankrupt in 2018. Since August 2018, Poundland has been the category killer of the pound shop format in the United Kingdom.
context_section_description: Since the acquisition of 99p Stores in 2015, Poundland's closest competitor was the now defunct Poundworld. Prior to this, the retailer had to compete with both discount chains, including temporarily dropping prices in a store to 90p in August 2014, to compete with then-neighbouring 99p Stores, who in turn reduced their prices to 92p. Other competitors are discount retailers B & M, Home Bargains, and Wilko, and supermarkets.
  Poundland may sometimes find they are competing with other retailers' own produce. It was reported in May 2010 that Poundland were selling rebranded lotions for £1, exactly the same product that Boots were selling under their own brand for significantly more. Boots responded to the findings by suggesting that the products available in Poundland stores were likely excess stock they had sold off below cost price which had been destined for overseas markets, with some directed into UK distribution without their permission.
  Larger chains have felt the impact of discount retailers, with some customers switching from larger supermarket retailers for everyday necessities. To entice customers into their stores from larger supermarket chains, Poundland advertise familiar brands at competitive prices, with the hope customers may then be inclined to impulse buy other products such as own-brand that they otherwise wouldn't have purchased. Asda reduced some branded product prices such as Colgate toothpaste to £1 in January 2009, in competition with Poundland who offered the same products at the £1 price; in response, Poundland introduced multi-buy offers to provide a larger quantity of the products for the same price. However, research conducted by The Grocer magazine in August 2009 found that of the 1300-odd supposedly discounted ASDA products, a third were the same price as in March 2008 and 173 products had been selling for less than £1 during Spring 2009.
caption: A Poundworld store in Castleford, which was Poundland's closest competitor
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