UK-based discount retailer Poundland has completed the acquisition of British online discount retail business Poundshop.com for an undisclosed sum.
Based in Wednesbury, West Midlands, Poundshop.com is an online-only value retailer that serves nearly 400,000 customers.
Poundland has acquired the business’ intellectual assets, its tested online platform and the picking and fulfilment operations in Wednesbury, as well as its customer database.
The company will also retain all of Poundshop.com’s current employees and continue fulfilling orders of its customers as normal at the time of integration.
Poundland managing director Barry Williams said: “It’s great to warmly welcome the Poundshop.com team to Poundland.
“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.”
The acquisition is in line with Poundland’s ‘transformational strategy’ and will provide the required infrastructure for the company to launch its e-commerce operations.
Poundland retail and transformation director Austin Cooke will lead the business.
Poundshop.com chairman Steve Smith and CEO Chris Maddox will also offer advice for the transaction.
Poundland plans to use Poundshop.com’s knowledge to enhance its online operations.
The company has trialled its e-commerce service at selected locations in Birmingham and Walsall and has expanded in the Midlands and into South Yorkshire.
In addition, the acquisition will expand Poundland’s online offerings by adding PEP&CO clothing and homeware ranges.
It will also expand the retailer’s geographical presence outside the UK and offer a Dealz online service in Ireland.
In July last year, Poundland announced it would expand its chilled and frozen foods range to 37 additional stores.
The expansion was part of Project Diamond Ice, the retailer’s plan to roll out this product range across its store network.