A new discounter is aiming to succeed where Poundworld failed - by raising the single-price concept to a fiver.
Five Pound World opened its first branch in a former Poundworld store in Burton-on-Trent last week. Two more are due to open this month, in Derby and London’s Walthamstow. The aim is to grow the chain to 150 stores within 18 months.
The business is the brainchild of Dev Singh, MD of Opium Group, a firm describing itself as ‘trading in various sectors all over the world’.
Everything costs £5, with plans to also sell cheaper products in multiples at the same price point. The range currently consists of only general merchandise and homewares, but The Grocer understands from a source directly involved that the existing range is only a quarter of that planned, with food and drink and other fmcg to be added in multibuy deals.
An example given was Domestos bleach spray at four for £5. But the new retailer also plans to let customers mix and match, so they could choose a Domestos bottle along with other items, bringing the price to £5.
Singh has recruited a number of former Poundworld staff. They include Darron Hitchcock, formerly Poundworld’s divisional operations manager, now Five Pound World’s regional director north.
A second Five Pound World regional director is a former Poundworld regional manager. The new discounter has also appointed a director of retail development who was previously a Poundworld store development manager.
An fmcg buyer is due to start in two weeks, building a range including multipacks.
The hope is that raising the single price point will help Five Pound World escape some of the pressure on pound shop margins from the devaluation of sterling.
“The pound is dead,” the source said. “Five pounds is the new pound.”