For a number of years now, I have half joked that the Poundland retail concept is ultimately
doomed to failure. By restricting themselves to one price point, it seems like inflation will ensure that they
stock an increasingly crappy range of goods. Well it seems like I was wrong- at least for now.
Poundland has just reported profits of £21.8 Million, (up 81.5% on the previous year) opened over 50 new stores
since April, and plans to open another 50 next year. It’s all fuelled by the recession which has made retail space
much cheaper to secure, overstock goods cheaper to buy in, and consumers much more canny with their cash.
The doom and gloom merchants will have you believe that these are hard times for everyone. Clearly they are not,
but if you buy into the myth, you leave yourself seriously short. The key is to focus your efforts on areas that
are thriving, and selling very low priced goods in high volume is a strategy as likely to bear fruit as any at the
You might not have the resources to be a Poundland competitor, but that doesn’t mean you can’t set up an online
business specialising in overstock goods in a market niche. Something to think about perhaps.
I see from Network Auctions' latest results that a freehold garage
in Ilford in Essex has sold for more than six times its upper guide price; £19,000 instead of £3,000.
We have tipped garages - well, some garages anyway - as best-buy investments in the past and can do an updated
feature for members on request. Let us know if the interest is there?
Following on from yesterday’s credit report story, This Is Money issues a reminder today of the
costs of store cards. These are aimed in particular at younger people, at about 25 years of age.
‘Many of the favourite stores of young shoppers — Warehouse, Wallis, Miss Selfridge and Dorothy
Perkins — push cards with eye-watering interest rates of almost 30 per cent.’
It’s wise to do the maths on any offer. On most store cards, someone who spends £500 at
Christmas and who repays the minimum 4 per cent a month will take almost ten and half years to repay the debt
and will pay £523 interest on that £500 spend.
According to brokers Your Mortgage Decisions, offset mortgages are becoming more popular and now account for some
11 per cent of new mortgages. An offset mortgage is one where your savings and mortgage effectively go into the
same pot and your savings offset some of the interest on the mortgage.
Your Mortgage Decisions say, "Offset is not a product that is suitable for everyone as it requires an element of
financial discipline and obviously applies to those with a decent level of savings but this level is not generally
as high as most people think.”
The rule of thumb figure for the amount of savings required to make an offset mortgage work was £10,000. But some
lenders are now suggesting it can work with smaller sums. If you are interested, drop us a line and we’ll put an
article or at least a checklist together.
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