The deal 5555555455% over the odds?
When asked how much you’d pay for your average Meal Deal at a local eatery, you might say “About three quid or so!”
Or when asked what you’d fork out for an MOT and a service, you’d probably say something along the lines of “Ooooh, depends on the car- but no more than £200!”
Even if you were a little off target with your estimation, you wouldn’t—at first glance—seem to be so wildly out of your mind as to overvalue the service/investment by millions of percent!
But that’s what Poundland has done in buying 251 99p Stores for over £50m!
Okay, I’m kidding—we understand the 99p stores’ real value! But we’re interested in this take over—not least because we’re not sure it’ll get past the authorities.
With the long-term plans to re-brand all 99p stores as Poundland stores, we can only really think of the 98p stores as any remaining competition.
Will Poundland’s buying preferences stop 99p Store customers being able to buy what they always have?
The deal—for cash and shares—is a smart move by Poundland. Assimilated 99p stores within close proximity to an existing Poundland can be sold off to offset some of the cost whilst still seeing off the competition and catering to customers.
Let’s see if they get away with it!