The death of the loom-band craze has hit Poundland as the discount retailer admitted sales will not grow as fast as last year when the obsession was at its height.
Chief executive Jim McCarthy said: “The loom craze was a once-in-a-decade opportunity in retail… It’s certainly the biggest craze I’ve ever seen in my lifetime.
“We sold millions of packets of these. Associated with the looms was parents seeking this product. By bringing more people to our stores they were buying extra things as well.”
It helped sales to top £1 billion for the first time, up 11.4%, as annual pre-tax profits jumped 68% to £36.2 million. The retailer hit targets to open 60 new stores this year, with seven opened in the last week alone. Shares, which debuted in March last year at 300p, lost 8.9p today to 302.2p
Poundland eventually wants to have 1000 stores in the UK and Ireland and recently opened a new distribution centre.
Bosses are also waiting on the Competition and Markets Authority to approve Poundland’s takeover of 99p Stores, which hit a stumbling block this year when authorities called for a more thorough investigation.
McCarthy has criticised the CMA’s decision and revealed a final judgment is expected in October. Over in Europe, the company’s ambitions to grow its multi-price point brand Dealz in Spain were progressing well, with McCarthy revealing the 10 stores he wanted open by the end of next year would actually be opening at least six months ahead of time.
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