Poundland is accelerating its move into the grocery market with the acquisition of Fultons Foods, the frozen food retailer that operates over 100 stores in the north of England.
The value retailer had already been working with Fultons for the last year on developing and rolling out a new chilled and frozen food range into Poundland stores. The extensive offer is already available in 70 of its outlets with the acquisition expected to enable Poundland to extend it to another 40-plus stores by December.
'Poundland also plans to invest over £25 million during the next two years in its chilled and frozen operation'
As we have covered before, Poundland also plans to invest over £25 million during the next two years in its chilled and frozen operation. This will see it convert suitable Fultons stores into the Poundland format, retaining a frozen and chilled offer in each location. The retailer also plans to use Fultons' Barnsley base as its National Frozen Distribution Centre and build infrastructure at its Harlow DC to bring its frozen and chilled food offer to stores across the south of England.Poundland wants to roll-out the food offer to further 150 stores in its 2021/22 financial year and to as many as 500 stores over the next two years, making it an ˜increasingly significant player' in the near-£20 billion chilled and frozen food market.The current co-owners of Fultons will remain involved in the business and all 800-plus Fultons staff will transfer to Poundland.