The recent recession has hit businesses across all sectors of the UK, particularly SMEs. But there was one type of small business that reacted positively to the recession, the pound shop.
Unlike any other small business, pound shops began to emerge as champions among their competitors. Since 2007, at least two pound shops are visible on every high street in London.
I was astonished when I came across three pound shops on Acton high street, where I have been living for the last six years. The shops are located but a few metres away from one another. Three years ago there was only one such shop on Acton high street. Pound shops have trounced other small businesses in London.
Last Christmas, I went to Ealing Broadway for my Christmas shopping. As I entered the shopping centre I saw three shops with closing down signs. As I continued walking, I came across a recently opened pound shop. It was unusual to see a pound shop inside the shopping centre. i also recalled that a few months previously another pound shop had opened in the same area.
I visited three pound shops in different parts of London to observe how they were doing. To my surprise there were people waiting in long queues, as if they were shopping in a supermarket. I waited for at least five minutes to be served and saw that customers were spending between £10 and £30.
While queueing, I formed a question; do pound shops make real money?
This type of shop must be making substantial money by selling quantity over quality. Pound shops are the ideal place to shop for a cheap bargain.
I have been to four different London boroughs and came across two pound shops located within a hundred yards of one another. As above, two years ago, several North West London shops closed down because of the recession, yet within twomonths a pound shop opened in one of the closed units.
So why are there so many pound shops visible on our high streets?
The answer to the question is very simple; there are more pound shop customers than ever before, together with a very high demand for cheap goods. Also, pound shops stock almost everything a shopper needs, from toys to DIY kit, batteries to kitchen towels and even washing powder.
One final point; most products I have bought from pound shops have turned out to be of good quality.
