Poundland chairman and former Safeway chief executive Colin Smith said the everything for a pound' chain was now driving significant volumes in ambient grocery and represented an increasingly attractive route to market for suppliers across key categories.
From a standing start in 1990, Poundland now has 81 outlets across the UK and plans to double its business in the next three years, said Smith, who joined the company in June 2002 following an MBO backed by private equity firm Advent International.
Turnover for this year is on course to exceed £200m.
Although the company encountered initial scepticism from some suppliers worried about selling top brands in the Poundland environment, this was quickly dispelled, said chief executive and co-founder Dave Dodd. "The big brands are dealing with us direct now. For a start, they know exactly where the products are going, how much we are selling and what the retail price will be, which is better than selling to jobbers and hoping for the best.
"Our senior buyers can make decisions incredibly fast because they are not tied by listing agreements, planograms, and so on. We can get products into our stores in record time and shift substantial volumes rapidly. It makes sense for suppliers to talk to us direct on promotional and closed lines."
Approximately 400 of the chain's 2,000 SKUs are in impulse and grocery lines. Suppliers are now working more closely with the chain to develop pack sizes and weights to suit the £1 price point.