Pound shops increase by 60 per cent
Updated on 03 September 2009
Research showing the number of UK discount stores has increased by 60 per cent in two years suggests the recession is making consumers thrifty. Elodie Harper reports.
The Local Data Company backed by the British Property Federation (BPF) said that for every one discount retailer that had closed in the UK, two had opened.
The increase has been fuelled by the demise of Woolworths which has left prime store fronts available, the data group said.
Regions with the most discount shops include Greater London (357 outlets), the South East (250), Yorkshire & The Humber (137) and the North West (135).
Just under half of the 1423 discount stores across Great Britain are in London and the South East.
The research also suggested that customer bases had "drastically changed" during the current economic downturn.
Poundland has seen a 22 per cent increase in the number of shoppers from the more affluent A/B social group. Traditionally the retailer's target market was driven by females in the C2, D and E economic groups.
The research said that the change had occurred because more discount shops were moving into traditionally wealthy areas such as Cambridge, Oxford, Stratford upon Avon and Tunbridge Wells.
Liz Peace, chief executive of the BPF, said: "Whatever opinions people may have about pound stores, they are growing in popularity and more importantly, generate jobs and footfall that benefits other retailers on the high street.
"The increase in discount stores represents a marked change in the psychology of shoppers.
"Rather than shopping for a particular good or commodity, people are going out with a set sum of cash knowing that they will be able to get a specific number of items. And in practice they often end up buying more."
