Poundland is continuing to push into HMV’s territory after securing a deal with CD, DVD and game buyer Entertainment Magpie.
Under the deal, Entertainment Magpie which is currently advertising its Music Magpie service on television is selling some of its used and reconditioned CDs on to Poundland, which then offers them under its ‘Replay’ brand in dedicated in-store ‘Entertainment Zones’.
The tie-up means Poundland can sell CDs, which would have been too expensive new, for £1.
Poundland customers have spread the news on online forums, describing the CDs as “looking brand new” and “perfect”. Other forum members hoped the supply deal would prompt it to start selling reconditioned DVDs or video games.
Poundland trading director David Coxon would not confirm whether DVDs or video games were in the pipeline. However, he said the retailer was “trading well with Entertainment Magpie, which is part of a very successful entertainment offering in Poundland that offers amazing value”.
The deal was just one of two big announcements from Poundland this week. It also revealed plans to expand into Europe, starting in the Republic of Ireland. It said it hoped to open four stores totalling 25,000 sq ft under the Dealz fascia this year, creating 120 jobs, and a total of six stores in Ireland by next March.
The new brand means that Dealz, unlike Poundland, will not be tied to a fixed price point and can therefore offer more flexible pricing although CEO Jim McCarthy told The Grocer that the company had not decided on a “pricing architecture” for its new stores as yet.
“We want to leave that until the last minute because it is a commercially-sensitive decision,” he said. “Once people know what the prices are they will be able to form a counter-strategy, so we do not want to let that news go prematurely. Clearly we need to offer amazing value and that will be reflected in the prices.”