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Marketing Audit on a еЈ1 shop
Pages 11 (2761 words)
Pound Shops SWOT Analysis Strengths: Pound shops are low price point retail shops that thrive on low price of products across the entire product line. All their products would be priced for a pound (or two). The fixed low price point factor becomes their largest strength, one that truly differentiates them from all other consumer retail chains.
According to the figures released earlier this year, Poundland reported an 81.5% increase in profits from the previous year. Poundworld posted record profits of ?5.4m in on sales of ?133m. Buying from these pound points provides incredible value for money to the consumers, and with budgets stretched, it makes pound shops very preferable for them. The low prices are made possible due to low costs incurred in their model, by these shops. A conscious effort to keep a check on costs is made, in terms of overhead expenses and direct costs. Pound shops are able to save large chunk of money by buying in bulk quantities. They don’t shelve varieties for their products, but usually stack on products from one or two manufacturers for each category. This allows them a lot of bargaining power with the suppliers. Since they only have to stock few varieties for each product category, they can always switch to those suppliers that offer the lowest rates. Even renowned brands have supplied their products to pound shops, recently. Pound shops’ model is based on keeping prices at the low price points, ensuring there’s price consistency across the shop, and which continues overtime. ...
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