Poundshop.com relaunch

Poundshop.com has relaunched and plans to offer more lines

Steve Smith’s Poundshop.com has joined forces with rival Hereforapound.com and relaunched with a new website.

The revamped service, which sells items priced at a pound over the web, plans to double its current product range to over 3,000 products.

The rivalry between Poundshop.com, launched by Poundland founder Steve Smith, and Hereforapound.com was reported in a BBC documentary earlier this year. The merger of the two sites was agreed following talks this summer.

“I looked at the competition and thought we can double turnover, reduce overheads,” Smith told The Grocer yesterday. “We could share our contacts and offer many more suppliers than before. And, on our side, we can offer the best domain name in the industry.

“I think we can expect to grow very quickly, so I’d be expecting a £100m turnover in the next three to five years.”

The merger was not the result of the either business struggling, Hereforapound.com’s Donna Baker - and new MD of Poundshop.com - told The Grocer.

“It wasn’t that I had concerns about Hereforapound.com’s future; it just made sense to pool resources,” Baker said.

The merger means the service can offer customers a reduction in delivery prices, the company said. There will now be no minimum order; the highest delivery charge is £3, but the more customers spend, the less this charge is. Orders over £30 have free delivery and for £5.99 shoppers can have next-day shipping.

Previously Poundshop.com offered a £3.65 delivery charge and the minimum order was £10. Hereforapound.com offered free delivery on orders over £30 and a delivery fee of £4.50.

Poundshop.com was originally a joint venture between Smith and Poundworld, but the high-street chain pulled out of the partnership in August, citing “ongoing concerns” surrounding “operations, online trading, web platform and marketing of the site”.

Baker claimed she did not share Poundworld’s concerns about the viability of the service. “I’m a believer in this market; otherwise I would never have started Hereforapound.com. This market is not easy, but you can find ways to make it work.”