Poundland co-founder brings 99p store to Ecommerce

Poundland co-founder Steve Smith will soon offer a single price Ecommerce store to UK residents. Poundland co-founder Steve Smith announced

Poundland co-founder Steve Smith will soon offer a single price Ecommerce store to UK residents.

Poundland co-founder Steve Smith announced the new website which will incorporate the the business model of the 99¢ store but will be redefined for online purchases. The website, poundshop.com, will be the first single price point Ecommerce store in the UK.

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The new online offering will use slightly different tactics than those found in 99¢ stores, Poundland, and 99p stores. Orders placed online will have a minimum amount of £20.00 with a £3.00 shipping charge on top. Given the limitations and shipping fees, Smith is positive the chain can retain low prices and sell in high volumes given there is no additional store upkeep charges. Negotiations with suppliers on price and quantity will also help insure a continuous strain of low prices with all products being priced at £1.00, according to the store’s model.

“We’re negotiating on delivery, pick and packing. I’ll get it as cheap as I can and pass savings onto the customer. We’ve very tight margins, so you need big volumes. A lot of people find it hard on the distribution side but my background is supply chain and distribution. I’m known in his game so the phone hasn’t stopped ringing,” added Steve Smith.

Poundshop.com will focus on bulk purchases, large amounts in exchange for discounts and incentives. 99¢ stores rarely offer sales and loyalty programs as the initial price is so low.

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Smith also commented on the shipping fee, mentioning travel costs, congestion charges, and parking fees can easily amount to over £3.00 when making a trip to the high street. Smith is also currently in negotiations on a location for a distribution center, and plans to offer pickup options alongside standard shipping. Convenience was also mentioned, as physical counterparts such as Poundland and 99p Stores close before the majority of Brits get off work.

“Most pound shops close at 6pm, yet most people get in from work at 7pm or 8pm. A lot of people these days don’t have the time,” Smith added.

Poundshop.com is currently being piloted in the London area with plans to be available through England in the next 3-6 months.

 

Image courtesy of Wikimedia
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