'Five Pound World' Launching As New Discount Store
Poundworld may have been loved by the nation for its endless supply of storecupboard staples and random gardening paraphernalia - all for, you've guessed it, a quid - but earlier this year it announced its surprise collapse.
By mid August, Poundworld's 335 stores had gone, taking with them thousands of jobs.
But in its wake comes something new, which will take on a similarly straightforward format, but one that apparently eases the pressures that pound shop margins have faced from the devaluation of sterling.
The new discount concept is the brainchild of Dev Singh, managing director of Opium Group - a company that describes itself as 'trading in various sectors all over the world'.
Five Pound World opened its first branch in Burton-on-Trent, Staffordshire, last month. Two more are due to open this month in Derby and in Walthomstow, North London.
The premise is as simple as Poundworld's was - everything costs £5, with cheaper products also sold in multi-buy deals for a fiver as well. For instance, you can pick up a four pack of Domestos bleach spray for £5. Exciting stuff, isn't it?!
According to the Sun, Five Pound World also plans to take the retail spaces left vacant by Poundworld over the coming 18 months.
The range covers general merchandise and homeware, but a source told industry magazine The Grocer that the chain plans to move out to food and other fast-moving consumer goods.
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Poundworld went into administration back in June, before starting to close stores in July - telling staff in a memo: "The administrators have been preparing contingency plans in the event that we are not able to deliver a sale of the business as a whole."
Deloitte, the company appointed as the administrators, admitted that there had been struggles to find a buyer for the chain since it went into administration.
At the time, Claire Boardman from Deloitte, said: "We would like to thank all the employees for their continued support and commitment during this difficult time. We are keeping staff appraised of developments as they happen."
According to the BBC, Poundworld imported a lot of its stock from the Far East, but was having to pay more for it because of the fall in the value of the pound.
This added to the pressure for the business and, failing to find a buyer for the business, the final bell eventually rang.
Five Pound World bosses instead hope that raising the single price point will help the business avoid some of the pressure on pound shop margins from the devaluation of sterling.
Let's hope Five Pound World finds a better fate, eh? Slightly less catchy name, but let's see...
Featured Image Credit: PA