Discount chain Poundstretcher says it is giving all its staff a 10 per cent pay rise as a way of saying thanks for helping the business through a tough couple of years trading.
The Leicestershire-based group said from January 1, it will be raising the salaries of all staff who have been with the business more than a year.
It said: “The award is a show of support by Poundstretcher to its employees, particularly support centre and customer facing staff, acknowledging the discipline and commitment made to help maintain the business’ success.”
The chain employs around 5,500 people and sales have stayed strong over the past half year, despite a CVA and new cost pressures.
Co-owner and chief executive Aziz Tayub recently told BusinessLive the group saw sales of £140 million in the six months to the end of September, and pre-tax profits for the half year of £23 million.
Back in 2020 the discount chain went into a CVA – a legally binding agreement with its creditors – to try and bring down cripplingly high rents, before going on to close loss-making stores with the loss of around 200-250 shop staff.
Mr Tayub said the company’s turnaround saw pre-tax losses of £49.5 million in the year to March 31, 2020, turn into pre-tax profits of £30 million the following year.
He said management were conservatively estimating pre-tax profits for the full current financial year of £40 million, on the back of cheaper rents, margin improvements and a fully stocked warehouse at their base between the villages of Desford and Kirby Muxloe in Leicestershire.
Poundstretcher has opened 47 new stores across the Ƶ over the last twelve months and plans to open a further 50 stores in the next year. It currently has 365 branches.
The family-owned retailer’s newest stores include Derby, Erdington, Poole, Truro and three stores in Northern Ireland.
In the autumn Bargain Buys, a Poundstretcher subsidiary, bought the JTF Mega Discount Warehouse brand out of administration.
Nottinghamshire-based JTF collapsed in the summer when a deal to sell the business fell through. The chain operates a membership clubcard system, with an online operation.
Mr Tayub said: “We are proud and inspired by the way our company has risen to every challenge, from our CVA to the pandemic, with resilience, courage and a caring attitude.
“We really value the excellent contribution that all of our employees have made over the last year to maintain business continuity and ensure we are in a position to achieve further growth, and as such have decided to reward our staff to show our deep appreciation for their ongoing hard work.”
