Not even 18 months into its online strategy, British discounter Poundland has announced it will shut down its web shop and focus on the physical stores again.
Not enough customers
The discounter, which sells items at a pound, will use its website as a "window into the stores", but it will no longer be possible to order things online and get them delivered at home. Trading director Barry Williams says the company will now shift its focus back to the physical stores and admits that "the amount of customers wasn’t that great [...] and the amount of returning customers wasn’t as high as we would have liked to have seen."
The chain, not unlike Action and Euroland in the Netherlands for instance, sells items at the lower end of the market, attracting people looking for a bargain. A five pound (5.8 euro) flat shipping fee, with an additional three pounds (3.5 euro) for fast delivery, was most likely too expensive for the habitual Poundland shopper. Comparable chains like Action (or Primark in the clothing industry) similarly have no web shops and no intention, at this point, to make the move online.