Poundland proves popular with everyone

By DAILY MAIL REPORTER
Updated: 05:46 EDT, 13 January 2009

It is a favourite shop for bargain-hunters and aims unhesitatingly at the consumer who has to watch their pennies.

On top: Thrift store Poundland is proving popular with those counting their pennies

But Poundland - the 200-strong chain of stores whose pricing policy is unambiguously spelled out in its name - is proving to be an increasingly strong draw for the middle classes.

The company reckons that more than 10% of its sales now go to people in the A and B social groups - well up on the figures of a year ago.

That increase helped Poundland record a 3.9% increase in underlying sales through established outlets over the five weeks to January 4.

Poundland has been opening new stores, too, so total sales were up by nearly a quarter over the past year.

The retailer plans to open a further 30 outlets in 2009, which should create more than 1,000 jobs.

Said chief executive Jim McCarthy: 'We can capitalise on customers' desire to shop cleverly and seek out the best value for money.'

The company was started in 1990. In 2002, it was sold to private equity group Advent International, and there is mounting speculation that Poundland is being lined up for sale again.

•Pawnbroking group H&T is also benefiting from the economic downturn. It said it expects its profits for 2008 to be ahead of City forecasts.

Analysts now think the company will make more than £10m. The shares gained 24p to 174p and underlying turnover is running 3% ahead of last year.

H&T has been opening new outlets and now has 105 shops.