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Poundstretcher - good or bad?

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I watched a bit of 'saving poundstretcher' the other night, only watched around 15 minutes of it but did it offered some interesting insights into life in the UK. I've on occasions been into a poundstretcher as there is one local.

- Shoplifting seems to be a major problem

- I would imagine staff are paid min wage and on tax credits

- Staff theiving stock also seems to be fairly rife along with booking hours not worked

- I got the impresion staff were treated poorly, much the same as staff for most shop type jobs I guess

- Have they got long left? I find the local store doesn't really offer much to draw me in.

- Will a falling Pound and interest hike finish then off?

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Never been in one as I'm far too posh, however I did watch this programme and what struck me is that there are too many competitors in that space now. Their stores are really grotty by the looks of it, so I'd never go in there. Honestly how much does it cost to paint a wall?

Another one of these companies that I'd love to run because I could turn it around better than the current management. Wetherspoons shows that cheap can be done well, the difference is they care about presentation and their pub buildings are well looked after.

Without wanting to sound "rayciss", I could tell it was Indian-owned before the owners were shown.

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2 minutes ago, spunko2010 said:

Never been in one as I'm far too posh, however I did watch this programme and what struck me is that there are too many competitors in that space now. Their stores are really grotty by the looks of it, so I'd never go in there. Honestly how much does it cost to paint a wall?

Another one of these companies that I'd love to run because I could turn it around better than the current management. Wetherspoons shows that cheap can be done well, the difference is they care about presentation and their pub buildings are well looked after.

I think tey must all be grotty, my local one certainly is.

 

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Thinking about it, they are just a crap version of B&M stores.

Poundstretcher never feels like you are getting good value, some of the products seem to be of very poor quality. Stores are all grubby looking, both inside and out.

I reckon bust by the end of the year. I'm sure they will blame it on Brexit.

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1 minute ago, crashmonitor said:

Main reason it is on its way out is they are located on streets several yards from a car park which is probably pay and display. Not too practical for a big food shop...they survive on tiny transactions from each shopper.

Call me a snob but I think most of their patrons use public transport going by the programme. 

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5 hours ago, spunko2010 said:

Never been in one as I'm far too posh, however I did watch this programme and what struck me is that there are too many competitors in that space now.

Wow Jacob Rees Mogg is amongst us!

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38 minutes ago, Sucralose Ray Leonard said:

You posh twunt Spunko. 

I rather enjoy and appreciate Pound Stretcher. Shame if she falls

You need to go upmarket like Spunko, start going in B&M stores instead.

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Seriously though stores like these aka B&M, Home Bargains, Wilko, PS etc

...are good for saving money on some stuff like toiletries and coffee.

For cheap sugary sweets for a kids party they are good for that too and cheap toys for any lil uns.

 

Mostly though we shop a Waitrose for the good stuff ;)

Edited by JackieO

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3 hours ago, crashmonitor said:

Main reason it is on its way out is they are located on streets several yards from a car park which is probably pay and display. Not too practical for a big food shop...they survive on tiny transactions from each shopper.

Indeed and in reference to Spukos comment on how much it costs to paint a wall, answer would be the profit on a significant number of transactions. I understand the point but your average poundstretcher customer probably wouldn't give a shit.

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2 hours ago, JackieO said:

Seriously though stores like these aka B&M, Home Bargains, Wilko, PS etc

...are good for saving money on some stuff like toiletries and coffee.

For cheap sugary sweets for a kids party they are good for that too and cheap toys for any lil uns.

 

Mostly though we shop a Waitrose for the good stuff ;)

 

Yes, I shop in all of those (including waitrose every now and then) for various things and have to say that if you take those as the competition then Poundstretcher is doomed. Each of those other shops has something to draw people in. Wilkos is popular for gardening. Home Bargains good for branded toys. B&M has a good range of goods. Oh, that reminds me, there are the range stores as well which could be considered in that group.

 

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3 hours ago, null; said:

You need to go upmarket like Spunko, start going in B&M stores instead.

I can often be found wandering near the alcohol and tool sections (no link) in both and not fogetting the 3rd member of the gang, Home Bargains. 

2 hours ago, spunko2010 said:

I'm only semi posh as Wetherspoons are always my go-to pub.

Common bastard 

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I thought this was going to be about transatlantic flights.

Clearly I have no clue about any of the aforementioned purveyors of grocery as I wouldn't know where to begin to find one.

Which is a bugger as I need some panko breadcrumbs and coop don't stock them. 

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19 hours ago, null; said:

I watched a bit of 'saving poundstretcher' the other night, only watched around 15 minutes of it but did it offered some interesting insights into life in the UK. I've on occasions been into a poundstretcher as there is one local.

- Shoplifting seems to be a major problem

- I would imagine staff are paid min wage and on tax credits

- Staff theiving stock also seems to be fairly rife along with booking hours not worked

- I got the impresion staff were treated poorly, much the same as staff for most shop type jobs I guess

- Have they got long left? I find the local store doesn't really offer much to draw me in.

- Will a falling Pound and interest hike finish then off?

Staff 'discounts' run 6-10 the rate of shoplifting.

Stupid business idea - paying shit, treating staff like slaves then leaving them with access to 100k of stock.

Fucking genius.

14 hours ago, crashmonitor said:

Main reason it is on its way out is they are located on streets several yards from a car park which is probably pay and display. Not too practical for a big food shop...they survive on tiny transactions from each shopper.

They survive on their staff needing a 16h job token to acess tax credit gold.

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Increasingly the High Street model doesn't work for low priced tat. These are all low profit per item setups and the average spend is probably about £10 per customer, I would envisage on that £10 the net profit would be about 20p. So these are reliant on very high footfall but most High Streets don't have that nowadays. B&M might survive as they are in out of town shopping centres so have higher footfall and lower rents/rates (for now).

The other risk factor is that people are increasingly wising up to cheap Chinese tat being worth less than nothing.

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30 minutes ago, spunko2010 said:

Increasingly the High Street model doesn't work for low priced tat. These are all low profit per item setups and the average spend is probably about £10 per customer, I would envisage on that £10 the net profit would be about 20p. So these are reliant on very high footfall but most High Streets don't have that nowadays. B&M might survive as they are in out of town shopping centres so have higher footfall and lower rents/rates (for now).

The other risk factor is that people are increasingly wising up to cheap Chinese tat being worth less than nothing.

What footfall there is though the pound shops do attract and engage a lot of it.  I can see Poundland sticking around (or one of them at least), the competition really didn't;t offer anything significantly different product wise so their business will gravitate back to the remaining pound shops. I think they are missing a trick when it comes to other products to cross sell.

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1 hour ago, spunko2010 said:

Increasingly the High Street model doesn't work for low priced tat. These are all low profit per item setups and the average spend is probably about £10 per customer, I would envisage on that £10 the net profit would be about 20p. So these are reliant on very high footfall but most High Streets don't have that nowadays. B&M might survive as they are in out of town shopping centres so have higher footfall and lower rents/rates (for now).

The other risk factor is that people are increasingly wising up to cheap Chinese tat being worth less than nothing.

It works - briefy.

Get a load of cheap discounted crap. Roll out in shops, turn to cash.

Business model does not work at any scale aa you cant keep getting trucks of cheap crsp to sell, week in, week out.

Its why discount, bankrupt resellers are in a single warehouse.

Very quickly youll be overtook by your staff and lease costs.

Warehouses are one man bands with a couple of bitey dogs.

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5 minutes ago, spygirl said:

It works - briefy.

Get a load of cheap discounted crap. Roll out in shops, turn to cash.

Business model does not work at any scale aa you cant keep getting trucks of cheap crsp to sell, week in, week out.

Its why discount, bankrupt resellers are in a single warehouse.

Very quickly youll be overtook by your staff and lease costs.

Warehouses are one man bands with a couple of bitey dogs.

 

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19 minutes ago, spygirl said:

You might think its obvious.

You might want to have word with all the people and PE who put money into the business model 5 ish years ago.

Ditto high end burgers.

I knew clicking on this thread would be a mistake. I don't want to particularly disabuse you of anything as it seems to keep you happy.

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