Poundworld is a single price retailer that was founded in 1974, with the first high street stores opening in 2004. It has grown rapidly and now operates over 300 stores in the UK, selling a range of 10,000 products, and in 2015 achieved a turnover of £422m.
TPG commissioned Pragma to undertake a programme of due diligence that focused on understanding the business’s relationship with consumers and suppliers. Based on this insight, Pragma provided key considerations and recommendations for the future growth of the business.
An overview of the single and multi-price retail market, including analysis of the key players and their recent performance
Primary qualitative consumer research, comprising four focus groups with discount shoppers. These focused on understanding customers’ use of the discount channel, perceptions and use of the competitive set, future buying intentions, attitudes to single price retailers and an exploration of how multiple price point strategies could change consumer behaviour
In-depth interviews with leading FMCG suppliers to understand their perception of the discount market. Areas of focus included their relationships with discounters, their views on fixed price retailers, pricing strategies and the importance of the discount channel in their business’ growth strategy
Pragma’s report helped TPG understand the current dynamics and future trajectory of the discount market. In May 2015, TPG acquired a majority stake in Poundworld.