A “major high-street single price retailer” has threatened new website Hereforapound.com with legal action.
The single price e-tailer, which only launched last week, claimed the dispute was due to similarities with its use of ‘£1’ branding next to product images on its website.
“The complaint we received was based around branding issues on our website,” said Donna Baker, co-founder of Hereforapound.com. “We could have done without this in our first week to be honest, but I think it shows that big companies are taking us seriously.”
Poundworld, which itself launched transactional website Poundshop.com this week, denied it had made the complaint, while a Poundland spokesman said it “never comments on legal matters”.
Retail analyst Graham Soult said Hereforapound’s “feminine pink colours” did give it an original look, but that the discount sector in general was guilty of a lack of creativity in its branding.
“If you look at the recent Asda Christmas snowman advert, it was instantly apparent which colours represented which supermarket,” he said. “I don’t think the logos of the pound shops have anywhere near the same instant recognition, and that’s largely due to discount retailers borrowing too much from one another.”
Hereforapound generated £28,000 sales in its first week, and standard and next day delivery costs had subsequently been reduced by £1 to £3.50 and £5.99 respectively, Baker said.