Fri, 21 Nov 2025

Fri, 21 Nov 2025 The curious case of why Poundland is struggling during a cost-of-living-crisis

Why - in an age where so many of us are feeling the financial pinch - are some budget shops on UK high streets having such a tough time?

* Online marketplaces like AliExpress, Temu, and Amazon Haul are gaining popularity, with 30% of online shoppers in the UK shopping on Temu alone.
* Traditional budget shops risk being seen as no longer offering the cheapest prices if they don't adapt to the changing landscape.
* The "cost-of-business crisis" caused by rising minimum wage and employers' national insurance contributions could shake out weaker players, leading to consolidation in the market.
* Some chains, such as The Range and Home Bargains, are still doing well and expanding. The article also highlights the importance of budget shopping for some households, who may not have access to online shopping or prefer to shop in person. It notes that good budget retailers come into their own during big events like Christmas, when shoppers often look for affordable options. The article includes a quote from Catherine Shuttleworth, director of retail insight at Mintel, who suggests that the market is becoming increasingly competitive and that there will be consolidation among players.
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