Poundland has acquired online discount retail business Poundshop.com for an undisclosed sum.
The deal includes Poundshop.com’s intellectual property, its online platform, the picking and fulfilment operations in Wednesbury and its customer database.
The acquisition is the latest step in the transformation of the discount retailer and will provide the infrastructure to enable a national roll-out of its own pilot ecommerce offering.
Poundland plans to build on the experience of Poundshop.com to ramp up its own online operation, which has already begun in selected postcodes in Birmingham and Walsall and has now been extended across the Midlands and into South Yorkshire.
Poundshop.com is the UK’s largest online-only value etailer with almost 400,000 customers across the UK and 65 colleagues at its distribution centre.
The integration will be led by Poundland retail and transformation director Austin Cooke who will lead the day-to-day operation of Poundland’s online business and Poundshop.com chairman Steve Smith and chief executive officer Chris Maddox will act in an advisory capacity to smooth the acquisition.
Poundland will also retain all of the current Poundshop.com colleagues.
As a result of the acquisition, Poundland plans to expand its online offering, adding PEP&CO clothing and homewares and extending beyond the UK, offering a Dealz online service for The Republic of Ireland.
“It’s great to warmly welcome the Poundshop.com team to Poundland,” Poundland managing director Barry Williams said.
“This acquisition puts power and pace behind our aspirations to make our amazing products and value available to customers across the UK and Ireland, however they choose to shop.”