How Poundland is coping with coronavirus and is still looking to expand

Retail success story Poundland is remaining unapologetically upbeat despite the coronavirus crisis.

It is poised for further expansion once the current situation has been overcome and will be opening its new multi-million main base in the West Midlands by the end of the year.

Barry Williams, managing director of the low-cost chain, has been going into his office every day through the lockdown and is proud that it has remained open to continue to serve its customers through the pandemic lockdown.

Mr Williams, who joined the Midlands-based retail chain in 2016 as trading director, said Poundland – part of the Pepco group – had been classified as an essential retailer.

“We have always felt that Poundland has a relatively unique role in the market place. The vast majority of our customers use public transport to get to our stores and they did not have the money or the financial means to stockpile.

“It was really important that we continued to play a role for our customers through the crisis,” he stressed.

Poundland has stores across the West Midlands, Shropshire and Staffordshire. Its administrative base is close to the M6 in Willenhall and it has three major warehouse sites around the country – Springvale in the Black Country, Harlow and Wigan.

It has 841 Poundland and Dealz sites in the UK and Ireland and in recent years has built up Dealz chains of 30 in Spain and 50 in Poland.

Poundland has operated the vast majority of its UK estate right through the pandemic, with only 113 temporarily hibernated.

“The reason we took the decision to hibernate was where we had two stores in the same high street to focus on one of them or where we are in shopping centres and the landlord requested closure. We are now in the process of finalising plans to emerge from hibernation,” he explained.

Mr Williams said: “Throughout it all, as you would expect, our primary concern has been for the safety of our colleagues and customers. We have followed to the letter all the guidelines that came through on social distancing from Public Health England and the Government.

“We have had colleagues on the door to moderate numbers coming in. There are markers every two metres on the floors of stores and we have upgraded the hygiene regime including cleaning work stations and tills.

“We replenish the shelves in the evening so we don’t get in the way of customers and we have removed all barriers that could get in customers’ way. We have created as much space as we can and put in perspex screens at checkouts.

“Everything we could do we have done to protect colleagues and customers. It gives a high degree of confidence to out customers as well when they see we are taking these measures.

Turnover down but food sales up

Mr Williams said that Poundland had not needed to recruit more people during the lockdown.

“The chains that have been recruiting are mainly those where they have an online business and have struggled to keep up with that. We are in the mid ground in the market and don’t have an online presence,” he explained.

Mr Williams said the crisis has been a challenge for Poundland which relies on high volume of customers.

“The business has done a pretty good job in serving customers and continuing to play our role in the community,” he said proudly.

Turnover had gone down but Poundland has seen food product sales increase, while general merchandise and clothing declined over the lockdown.

“We have 18,000 colleagues across the business and up to 2,000 have been absent on any one day through self isolation and shielding but gradually we have seen them coming back.

“I am absolutely in awe of all frontline essential workers including our colleagues who have done an amazing job turning up and serving our customers and playing an important role in local communities. Every retail and essential worker has been phenomenal throughout all of this,” said Mr Williams.

“We have reduced hours to make sure we had time in the evening to replenish our stock and we seem to have coped with that.”

He is keen to see the full range of high street shops return to trading and, ahead of tomorrow’s announcement on relaxing lockdown measures, said: “The big important thing is that when it is safe to do so the high street is allowed to return to normal

“Through the pandemic experience many of us – me included – have been reminded of what things are important in life. I believe the high street plays a really important part in the fabric of our whole society. If we don’t breathe life back in to retail we will end up with the power of the market resting in fewer hands again because it will be consolidated.”

Mr Williams warned prices could rise, but that expansion plans remained in place, adding: “There will be new opportunities and we will look to continue to grow but grow in the right places. Customers will require new things and we will adapt the overall business with products and categories that we put in front of customers to meet those needs.”

Poundland’s move from its current base in Willenhall to a new main customer support centre in Walsall is expected to have been delayed for about two months by the crisis. It represents a multi-million investment for Poundland and is seeing the former HMRC regional office at Pattison House in Midland Road on the outskirts of Walsall town centre being refurbished by contractors.

The vast majority of Poundland’s office staff have been working from home, but will return to work in person when it is safe to do so.