Poundland co-founder is a Hub of business sense

Shropshire entrepreneur Dave Dodd is in no doubt about what makes a successful business, writes Amy Bould.

"Have a clear business plan, don't look at your business in rose tinted glasses, do your research. Success is about identifying the opportunity and being absolutely confident you can fulfil it. Recessions are not times for hobby businesses."

Well, you certainly wouldn't call the 50-year-old's new venture a "hobby".

Mr Dodd has just launched a new chain of homeware stores called Hub, which he says is a "next generation retailer", offering middle-market quality products at affordable prices.

The launch store opened at Telford Shopping Centre, the first of more than 200 stores planned nationwide in an ambitious initial roll-out plan which will see at least 30 stories opening by 2012. And given Mr Dodd's track record in retailing, you wouldn't bet against its future success.

The former market trader co-founded the discount giant Poundland in 1990 and built a chain of 42 stores across the country.

Originally set up with business partner Steve Smith, he led a management buy-out in 2002 and although he left the chain four years later, he held on to shares until this year when Poundland was snapped by new owners Warburg Pincus for £200 million.

Poundland gave him the experience, the inside knowledge of value retailing and most importantly perhaps for Hub, a global network of contacts and suppliers.

These suppliers would normally deal with household names, established retail giants. But they know Dave Dodd, and his trading history, and are giving their support.

Mr Dodd said Hub will be designed as a fresh and contemporary store, fulfilling a niche in town centre shopping with a store stocking a variety of reasonably-priced quality products.

And he's especially pleased to be opening the first in Telford, where he has lived for more than 25 years.

"There exists a very real opportunity in "in-town" retailing because the middle market is very poorly served at the moment, there is virtually no variety shopping in town centres.

"Hub has been designed as a next generation retailer, people shouldn't expect more of the same.

"We are very much a value-focused business, my background is in value retailing. What we are doing with Hub is moving the goalpost in the middle market - to being middle market quality at reasonable prices.

"The products will change frequently, there will be something new every time people visit. We've also tried to combine that with an everyday shopping experience and there will be fantastic promotions too.

"I have an affinity with Telford and was delighted when this opportunity came up. Telford is the kind of vibrant shopping centre which Hub will fit nicely in."

Not a Poundland or a TK Maxx, but a chain hoping to appeal to the millions of mass-market customers aspiring to mid-to-high-end lifestyle and quality, but who are driven by the need for affordable prices and value.

Mr Dodd said: "During my time at Poundland, I built up a global network of suppliers and many of them would only be supplying far larger businesses, but because of my trading history with them and good relationships over the years, they are being very supportive and see we can grow into a national chain very quickly."

But is post-recession debt-ridden Britain in 2010 really the right time to launch such an ambitious venture?

Mr Dodd has no doubt it is exactly the right time.

"In a time of recession, people's need to find value increases. What people want is the right quality at the right price. I always had a hankering for variety retailing in a bigger format, but Poundland was such a demanding growth business I was unable to pursue that as an opportunity.

"Only after being out of it for a while, and seeing how much of the middle-market had moved to out-of-town sites or the internet, could I see that opportunity and I don't think anyone is doing a good job at it."

Which is where Hub comes in. Mr Dodd believes it is destined to quickly become the UK's most exciting large-format variety retailer, opening eight stores in its first year, followed by ten in the second year and another 12 in the third.

No, I don't think you could call that a hobby business, do you?