Poll: Is the rise in 'pound stores' good for our high streets?
A fierce battle is raging on the High Street – all for the pound in your pocket.
And in one Shropshire town it has brought to an end a shop that has served shoppers with discount goods for almost 15 years.
Shropshire's high streets have seen huge changes in the past decade. Household discount names like Woolworths have vanished into history, to be replaced by the unstoppable growth of the pound shop.
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Almost every high street in the county has at least one branch of Poundland, or B&M, or 99p Stores, or Poundstretcher, or Home Bargains.
The market has even moved online, with the Poundworld chain offering bargains on the internet for a minimum spend of £10 and a flat delivery fee of £3.65.
And a new business has also recently launched on the internet only. Hereforapound.com offers delivery for £3.50 – although there is no fee for orders over £20.
With competition inevitably comes casualties. In Oswestry, the arrival of big bargain players has meant an independent shopkeeper has been left with no choice but to close his business this Saturday after 14 years, with the loss of five jobs.
John Needham, owner of Kelvie's Bargains said he had taken the "heartbreaking" decision as the town was now "saturated" with cut-price shops.
The situation in Oswestry is one that is being repeated in shopping centres across the UK.
The latest to open in Oswestry was nationwide chain Poundland, which has 450 branches across the country.
The chain took over the former Peacocks and Bon Marche shop on Cross Street – just 100 metres from Mr Needham's own front door – and opened on June last year, creating 28 jobs.
Mr Needham said: "Here in Oswestry we have B&M, Poundstretcher, Home Bargains and Wilkinsons, as well as Poundland. All of them offer cut price goods. But Oswestry is a small town and everywhere you look someone is carrying a bag from one of those stores.
"We just can't compete. It was hard enough before Poundland opened but now it is impossible.
"If you go to other towns, such as Shrewsbury, the stores are there but they aren't as obvious and other smaller retailers are still trading. Some of my customer base has moved to the bigger stores such as Poundland even though we sell the same goods.
"I saw two of my regular customers in Poundland this week buying kitchen roll which we also sell. I couldn't understand it. Maybe it is because the store here in Oswestry is so big and stocks so much that people go there. But, to be honest, there are a lot of cheap shops in Oswestry for such a small town.
"This is the 14th year we have been trading but we will be closing because I can't compete with the name power of Poundland. As soon as I heard they were opening I knew they would affect me badly. Fortunately I have a very understanding landlord and he is aware of our situation, otherwise I would be facing bankruptcy. I have reached the heartbreaking decision to shut up shop and leave the town because there is nothing else I can do. It is a real shame."
Poundland has declined to comment on the matter. But Richard Sheehan, chief executive of Shropshire Chamber of Commerce, said: "It is clear that in the face of a challenge such as this, from large organisations, small independents will find it hard to compete.
"Competing against a national company does bring significant pressure on independent retailers. Everyone expects to have some competition in retail. Competition is healthy and to be expected when it is on a level playing field. But it is a different scenario when a store is taking on a national company which is selling the same products as itself. I feel for this store owner."
Mr Needham, who has been involved in retail in Oswestry for 35 years.
"I started off selling shoes at the market and then opened other businesses," said the 53-year-old. "I have been trading in this way for 14 years and now have five staff working for me. All of them will lose their jobs when the shop shuts.
"When we first opened we used to trade from a shop which was close to where Marks and Spencers is now. We were there for a while and then, when we had to move from there, we moved in to a shop just two doors down from where we are now. Then two-and-a-half years ago, we moved to bigger premises here because we were doing so well. The move to here was the right thing to do at the time. We started selling shoes and for about six weeks it was brilliant. But then it all slowed down"
Last July Mr Needham decided to try a rebranding of the store to increase trade – dispensing with the name Sound as a Pound and reopening as Kelvie's Bargains.
"We have tried to change the shop around a bit and move away from the pound bracket, hence the name change, but it hasn't worked," said Mr Needham. "If it wasn't for our loyal customers over the years we would have been facing this earlier so I really want to thank them.I really appreciate it. But it's not enough."
