Poundland set to become a high street giant as it seeks to take over 99p Stores in £55m deal
The deal has been agreed by both sides but must now go to the Competition and Markets Authority for approval
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Your support makes all the difference.Poundland is set to take over rival discounter 99p Stores for £55 million in a deal that would see the company become one of the biggest retailers on the high street.
The deal has been agreed by both sides but must now go to the Competition and Markets Authority for approval, where officials could demand the retailer shut some stores to allow for more competition.
Investors reacted positively to the news today, sending shares up 8 per cent to 386.4p. They have risen nearly 30 per cent since joining the stock market last year and sets the company well on its way to achieving the 1000 stores chief executive Jim McCarthy has previously stated he wants.
Mr McCarthy said: "This is a good deal for both businesses and will benefit customers and shareholders. Through working together, Poundland will improve choice, value and service for 99p Stores’ customers, bringing Poundland’s proven know-how and range to 99p Stores.
"We also believe that we can improve the performance of the 99p Stores estate and generate further value for Poundland’s shareholders. We look forward to working with the CMA as it undertakes its review."
Discount and pound stores have soared in popularity during the downturn from 2008 and continue to win over customers.
Poundland recently revealed that over Christmas sales rose by 9.8 per cent to £328.4 million, selling 2.8 million Toblerones and 4.6 million units of wrapping paper to shoppers lured by £1 goods.
Previously price wars between Poundlands and 99p Stores had broken out where the former had reduced prices to 95p, followed by the latter dropping prices to 94p.
Poundland’s previous plans to open 60 new stores this year remain unchanged, the company added.
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