The Proposal By A Discount Retailer Chain Essay

1010 Words Mar 13th, 2016 null Page
The proposal by a discount retailer chain, Poundland to take over its closest rival, 99p Stores in February 2015 has finally been approved by the Competition and Market Authority in September the same year. During the inquiry process, there had been a heavy speculation on how the takeover would affect the consumers especially those participating in the discount sector.
Reported in 2015 by the source from the government website under CMA department, the main concerns of this merger were reduction in quality, fewer promotions and closure of stores which will directly and indirectly affect the consumers. According to the latest official report from Poundland Corporate website, poundlandcorporate.com, “In addition to the 450 incumbent branches, subsequently after the takeover, Poundland will acquire a marginal of 255 rebranded stores all over the United Kingdom latest by April 2016”. This will put Poundland Ltd as the largest firm in the sector followed by Poundstretcher and B&M with 400 stores, Wilko and Home Bargains as the third largest with 380 stores and others like The Range and Store 21 with relatively much smaller store network. (Statistics taken from Wikipedia.org.com) There are 10 large competitors in this market and selling mostly closely-substitutable products such as stationery, homeware, gardening and seasonal merchandise to groceries and other fast moving consumer goods. By this nature, it is only logical to categorise the discount market in the UK as a…

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