Financial Statistics Analysis of Poundland
Poundland is a UK based company that provides products at the lowest retail price of £1 in every commodity purchased (Drazba 2015). The company started in 1990 with a single retail store that later generated revenues enough for opening other subsequent retail stores. The growth of the company has been advancing every year where up to date the company holds around 900 stores in Europe (Drazba 2015). The historical evidence of the growth of the Poundland Company has made the directors specialize in winning the competitive market and focusing on their primary goal of satisfying the needs of the customers.
Poundland Company has managed to penetrate into the UK retail market where they have made significant sales from their business. The core products in their stores include simple domestic commodities that go for as little as £1, thus, enhancing the affordability as well as availability (Drazba 2015). Therefore, the recent financial analysis indicated that the company had made progressive development in sales revenue where the figures starting from 2009 has changed drastically. In 2009, the company made sales revenue of £3200 million followed by 2010 where they made £3800 million (Boginski et al. 2005). The subsequent years until the recent financial year they managed to make sales revenues of £6800 million as the general merchandise sales revenue. Therefore, the company has a record of smooth development where they have recorded a rise in sales revenues in every year.
Table 1
Change in Revenue
| Year | 2009 | 2010 | 2011 | 2012 | 2013 | 2014 | 2015 | 2016 |
| Revenues (£) | 429 | 510 | 563 | 765 | 880 | 997 | 1111 | 1326 |
| Percentage increase (%) | 9.35 | 18.88 | 10.39 | 35.88 | 15.03 | 13.30 | 11.43 | 19.35 |
Poundland Company has not only developed in the sales revenues but also in the total number of stores opened. They started with a single store in 1990 but later managed to open other stores in England as well as other parts of the UK community. The stores had increased to 62 in 2009 (Drazba 2015). Similarly, the company progressed and opened more retail stores all over the UK and as to date, the company holds the largest number of stores compared to any other companies holding a total of almost 900 stores (Drazba 2015).
Table 2
Poundland’s Stores
| Year | 1990 | 2000 | 2005 | 2010 | 2015 |
| Stores | 1 | 62 | 121 | 263 | 896 |
The strategic planning employed by the Poundland Company is unique where they have an influence on the society by incorporating Corporate Social Responsibility in their financial independence. The company has been involved in various programs that help the community in matters of social development as well as assist the society in developing financially. The company has supported a program that raised an amount of £1.5 million in the fight against cancer. According to Boginski et al. (2005), the company has created quite a large population in their vacant places managing to employ almost 12000 individuals in their stores. Therefore, the company is seen as a business-oriented group that has helped the growth of the UK community.
The company has a strategic planning in managing their supplies as they have over 900 suppliers all over the world. Similarly, the distribution department ensures adequate planning that helps the company achieve a particular criterion in delivering their supplies to their stores all over the UK. For instance, Hulme (2016) states that the company has a record of ensuring their suppliers work towards ethical standards that would never compromise with the products and commodities released to the retailers. Similarly, the company knows how to handle perishable goods in a unique way where they have regional distribution centers that cater for Fast Moving Consumer Goods.
The records of the company in their economic achievements have been an effort employed by almost every team player in their business. The company focuses on their primary goal of providing suitable and affordable products at the lowest price thus, managing to make extensive records of financial development regarding sales.
Figure 1: Poundland’s Revenues and Stores.
References
Boginski, V., Butenko, S. and Pardalos, P.M., 2005. Statistical analysis of financial networks. Computational statistics & data analysis, 48(2), pp.431-443.
Drazba, E., 2015. Value Creation in European Private Equity Investments: Theoretical Framework and Case Study of PE Primary and Secondary Investment in Poundland-UK-based company. HEC Paris. pp. 27-34
Hulme, A., 2016. The rise and rise of the pound store: functionality and freedom under austerity. History of Retailing and Consumption, pp.1-6. http://dx.doi.org/10.1080/2373518X.2016.1227922
