Quote Originally Posted by blockend View Post
No inside word on Poundland, just a working knowledge of manufacture and retailing. If we see large stocks of in-date currently produced film re-appearing, you win.
No big deal, but the last films I bought at Poundland were 3+ years in date. I think my point was that there is a difference between "bankrupt stock" shops and the Poundland business model (not unlike the Lidl/Aldi model). This relies on large orders to suppliers and consequent low prices.....if you consider films, the marginal cost of manufacturing, say, 100,000 films is probably pence per film, but if this is shipped out in small orders via a structure of wholesalers and small dealers, each wanting their share of expenses and profit, the retail price may well have to be 3-4 per film. Put the same 100,000 films in one truck to Poundland head warehouse, sell at 1 each with minimum overheads, and the manufacturer and retailer each end up with the same profit per unit.

Not saying that this is the same with every item in Poundland/Lidl/Aldi, but many lines in these stores are negotiated on these large-quantity contract basis direct from factory to retailer, with the same products and special offers in every store in Europe. High volumes, marginal cost production, minimum distribution costs, and in many cases customers tempted to buy items which they would probably not buy at "normal" retail prices.