Poundstretcher expands

Brown & Jackson had hoped to buy BHS

Discount store Poundstretcher plans to open about one hundred stores a year around Britain over the next four years, creating around 1500 jobs.

Poundstretcher sells bargain merchandise, such as toys, household products, and clothes in High Street locations.

Discount stores have thrived in the UK's tough retail environment, with many middle-market stores suffering as a result.

This boom is reflected in the results for Brown & Jackson, Poundstretcher's parent company, which is controlled by South African firm Pepkor.

The company saw its profits jump £8m in the last year. Its profits hit £31.7m, compared with £23.8m in the previous year.

But so far this year, it has seen sales fall.

Hard summer

"Price competition was fierce because of the bad summer. The mid-tier traders were getting more aggressive by dropping their prices," chief executive Johan Visser said.

The chain's other stores are What Everyone Wants and Your More Store discount chains as well as the Famous Brunswick Warehouse.

"All four brands have expanded rapidly throughout the year and, given this encouraging performance, we will continue with an aggressive expansion programme," chairman Christo Wiese said.

Poundstretcher currently has 604 stores, 84 of which were opened this year.

Looking for acquisitions?

Brown & Jackson failed in its attempt to take control of the Storehouse group, which owns BHS and Mothercare, earlier this year.

The company is considering further acquisitions.

"That is not on our cards at the moment," Mr Visser said.

"But if the right opportunity comes around then we will look at it but we will only buy if the price is right."

Other discount chains, like Matalan, has also benefitted from the aggressive discounting climate in British retailing.

The most recent inflation figures show that the price of many goods in the shops are actually falling, especially in the clothing and footwear sector.