Just weeks after opening of its 250th premises 99p Stores — the penny-cheaper rival to Poundland — has now set its sights on expanding its presence in the Midlands and the north of England.
Launched in 2001 from a single store in London’s Holloway, the family-run budget retailer says its aim is to open at least another 150 outlets by 2017. To help it identify and acquire suitable premises the firm has retained four property agencies.
To consolidate its core south of England market share, 99p Stores has hired Norbury Sansom. Fletcher Morgan will handle the expansion into Wales and Wright Buchanan into Scotland, with Harris Lamb scouting potential premises from the Midlands northward.
Chief operating officer of 99p Stores, Tony Brown, explains that having property firms on the ground in various locations throughout the country will prove invaluable in closing successful deals.
With the search already underway, the firms say suitable sites will have ground floor sales areas of between 5,000 and 10,000 sq ft and storage floorspace up to 4,000 sq ft. Ideally, they will also have existing planning consent for enlargement.
Harris Lamb’s head of retail David Walton said; “We are now using our knowledge of the UK market to identify high street, shopping centre and retail park locations in major towns and cities that will make suitable additions to the chain,” he added. “We are aiming to have a number of new stores open before Christmas, and we’re already in conversations with a number of contacts to help us fulfil that promise.”
The retailer agreed to extend its bank facilities in December last year by a further £25m to accelerate its new store opening programme and take the chain’s portfolio past the 300 outlet mark.
As part of that expansion, the discounter recently opened its 250th new concept store in Northampton — where it is also headquartered — and which features a food-to-go section, bakery and improved convenience offer. The new services and ranges show a step-up in the discounter’s strategy. Instead of focusing solely on price, 99p Stores is improving the offer as a whole to drive more people in to store and increase basket spend.
The retailer is also the first of its Poundland and Poundstretcher rivals to offer its customers broadband internet deals, in association with Home Telecom, at a six month introductory price of 99p.
With Kirsten Kennedy
