Poundland, the biggest UK retailer of its kind, is reportedly weighing up whether or not to become a listed company before the mid-point of next year.
Sources "familiar with the situation" told Reuters that the group is considering an initial public offering (IPO) in the early part of 2014 following what it anticipates will be a strong Christmas trading period.http://www.digitallook.com/news/21194788/Poundland_considering_IPO_next_year_sources_claim.html?&username=&ac=,
The growth of pound or 99p shops has been big business in the UK and has no doubt been helped by austerity, as people look for value for money. I've often wondered whether such a company would make a good investment though, especially if you are a long term investor? The key question here has to be one of inflation. Can pound shops survive long term the pressures that they would be under to consistently source decent products over the years in an inflationary money system?
Poundland as a private company appears to be well run and growing, making decent money, but had it come to market 50 years ago it would probably have had a different name because even back in the 60's a pound could go a long way. The further you go back the more you realise what inflation really means. A pound isn't what it used to be and while people do have a lot more of them these days as the average salary has gone up quite a lot over the years, so have prices. It does make you wonder whether the pound shops have a long term future or perhaps along the way they will have to change their name, Poundland may end up as FiverLand and then TennerLand? It would never have survived in Zimbabwe or Weimar Germany.
