Bargain retailer Poundworld launches online store
Poundworld, a popular single price store in the UK, has launched its online store. Most items can be bought for just 1 pound, but there are also items that sell for higher prices. It’s an interesting move to see a bargain retailer operating online. It may open doors for others, like discount store-chain Action from the Netherlands.
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Interesting, as concepts like those of Poundworld in the UK or Action in the Netherlands are such a success, because they sell lots of handy products for low prices. A lot of shoppers who visit these kinds of stores, never leave the shop empty-handed. But how will this concept hold when it takes place online?
Delivery charge and a minimum order value
Poundworld is about to find out, as it launched the Poundworld Plus website. And immediately, there’s something that could make the concept less attractive online than it is in the psychical stores. Because customers need to spend a minimum of £20 if they want to order something. And then there’s the £3.95 delivery charge, or from £5.95 if you want the good to be delivered at your home the next day.
But the family-run discounter is optimistic. Trading director Chris Edwards Junior told The Mirror: “Value and convenience are top priorities for the UK shopper. There is a huge consumer demand for an online store that delivers good, transparent value and consistent prices that the shopper can trust.” He goes on by saying, as a retailer, it’s important to constantly progress and evolve with the times. “So we’ve had a dedicated team working on the website for over one year to ensure that the shopping experience we are offering is easy to use.”
Hopefully the company has learned a lesson or two after it launched Poundshop.com, in partnership with entrepreneur Stephen Smith. The retailer supplied stock and product images for the single-price website, but decided to leave the project just after six months. Now Edwards Junior says about Poundworld Plus: “No other online discounter on the market can offer the same amazing product range and value and we’re excited to expand in to Europe later in the year.”
That maybe so, although Action in the Netherlands could maybe pull it off too. This store-chain, founded in 1993, has over 400 stores in the Netherlands, Belgium, Germany and France and achieved sales of over 1 billion euros in 2013 (a 14% increase compared to 2012). Back in January of this year, Action’s CEO Ronald van der Mark said ecommerce would be only interesting if it manages to further lower the logistics costs, for example by using self-driving cars. Also, the delivery fee is something that needs to be tackled. “For five euros, you can leave our store with a bag full of products. An online store can’t compete with this, as the delivery charge alone will be probably around five euros.”
Poundworld has 270 high street shops in the UK. The company is planning deliveries across Europe later this summer.