Findings from customer exit surveys - gov.uk · • Questionnaire pilot in Croydon on 10 June 2015 – Questionnaire was found to work well; no signs that respondents had any problems

Anticipated Acquisition by Poundland Group plc of 99p Stores Ltd

Findings from Customer Exit Surveys

Rob SheldonTel +44 (0)20 8742 2211

[email protected]

6 July © Accent 2015

Structure

Background

Method

Findings – Customer profiles

Findings – Choice of store

Findings – Trip details

Findings – Details of shopping activity

Findings – Diversion

Findings – Other customer profiles

Appendix

slide 2

Background

• The CMA has referred the anticipated acquisition by Poundland Group plc of 99p Stores Ltd for an in-depth merger investigation

• It is concerned that the merger may result in a substantial lessening of competition through a possible reduction in quality, fewer promotions or closure of stores

– 160+ Poundland stores are within a mile of the nearest 99p Stores and 140+ 99p Stores are within a mile of the nearest Poundland store

• The CMA commissioned research, the objectives of which are to:

– Identify the appropriate geographic area over which competition between Poundland and 99p Stores takes place

– Understand some of the characteristics of Poundland and 99p Stores customers

– Understand the shopping behaviour of Poundland and 99p Stores customers

– Test the validity of the nationwide online survey that has already been carried out by Poundland

slide 3

slide 4

Method

Method 1

• An exit survey of those who made a purchase at Poundland or 99p Stores in 15 sampled locations

• At each location, one Poundland and one 99p Stores or 99p Plus Stores, except in both Croydon and Leytonstone where we interviewed at one Poundland and two 99p Stores

• Total store sample of 32:

– 15 Poundland

– 15 99p Stores

– 2 99p Plus Stores

slide 5

Harlow

Method 2

• Face-to-face CAPI interviews undertaken on tablet computers, using a questionnaire designed by the CMA in consultation with the Parties and Accent

• Majority of interviews conducted on the street, adjacent to the store exit. Where shops were located in shopping malls, interviews were conducted inside the store, just before the exit

• Interviews were conducted for seven days per store. Interviewing shift start times were staggered to ensure that as far as possible each store’s full opening hours were covered (e.g. 0900-1500, 1300-1900)

• Interviewer discretion over respondent selection was restricted to every second or every third person after completing the previous interview

• Refusals, out of scopes and the number of interviews achieved per hour were recorded, along with any comments about factors which might affect fieldwork

slide 6

Method 3

• Questionnaire pilot in Croydon on 10 June 2015

– Questionnaire was found to work well; no signs that respondents had any problems understanding the questions

– Some respondents unhappy at being asked for their income and some upset by the idea that the store might close. For the main phase, we allowed non response for age and income questions and added the following text after the diversion questions to allay concerns

– “Just to make clear, those last few questions were asked only as “what ifs”. There are no plans for Poundland/99p Stores to close all its branches for several months for refurbishment”

• Supervisor and interviewer briefing (mix of face-to-face and telephone) on 11 June 2015, attended by two members of CMA staff

• Main stage fieldwork between 12 June and 1 July 2015

• Total of 5,459 interviews undertaken (minimum of 150 per store)

• Response rate of 32%

slide 7

Quality assurance

• During the 20 days of fieldwork, the CMA conducted spot-checks of 9 interviewers (17% of all interviewers working on the project/4% of all interviewing shifts)

• Of these, 5 spot-checks were conducted during days 1-5 of fieldwork

• The following issues were identified:

– 3 interviewers were not maintaining a complete paper record of refusals to take part in the survey

– 3 interviewers were not working their allotted interviewing hours/interviewing in every hour of their shift (2 started late, 1 started and left early)

– 2 interviewers did not read out one or more of the following questions verbatim: Q2, Q3c, Q3d, Q6

– 2 interviewers prompted the person interviewed at Q3f/Q3fb

– 1 interviewer did not always select every third person for interview

• The interviewers concerned were corrected in real time (during/at the end of the affected interviews), and there was a full re-brief of all Accent regional supervisors (cascaded in turn to all interviewers) on days 5 & 6 of fieldwork, at the CMA’s request

• Following the full re-brief, 4 further CMA spot-checks revealed no repeat of any of these issues or any other issues

• In addition to the CMA’s spot-checks, Accent regional supervisors undertook separate spot-checks of 9 interviewers and spot-check/accompaniments with 2 interviewers (21% of all interviewers working on the project/5% of all interviewing shifts), in line with Market Research Society/BS ISO 20252:2012 requirements.

slide 8

Interviews by day and time

Sales%

Inter-views

%Sales

%

Inter-views

%

Open-8.59am 1 * Monday 15 14

9.00am-9.59am 5 2 Tuesday 15 15

10.00am-10.59am 10 9 Wednesday 14 14

11.00am-11.59am 13 17 Thursday 14 15

12.00pm-12.59pm 14 17 Friday 16 14

13.00pm-13.59pm 14 17 Saturday 18 15

14.00pm-14.59pm 13 16 Sunday 9 14

15.00pm-15.59pm 11 12

16.00pm-16.59pm 9 7

17.00pm-17.59pm 6 2

18.00pm-18.59pm 2 *

19.00pm-19.59pm 1 -

8.00pm - Close 1 -

slide 9

Sales%

Inter-views

%Sales

%

Inter-views

%

08:00 2 * Monday 14 14

09:00 6 2 Tuesday 15 15

10:00 10 10 Wednesday 15 15

11:00 12 16 Thursday 14 15

12:00 13 17 Friday 15 14

13:00 13 17 Saturday 18 14

14:00 12 16 Sunday 9 14

15:00 11 12

16:00 9 6

17:00 7 2

18:00 3 *

19:00 2 -

20:00 * -

21:00 * -

Poundland 99p Stores

• There was a reasonable match between day of week and time of interviews conducted compared with day of week and sales per hour of opening for Poundland and 99p Stores respectively (based on the aggregate sales data supplied by the Parties)

• Consequently, the data have not been weighted

*= less than 0.5%

Interviews by location

Poundland 99p Stores 99p Plus Stores

Ayr 151 172

Basingstoke 175 185

Croydon 183 168 + 190

Dudley 167 161

Eastleigh 193 166

Great Yarmouth 176 167

Harlow 174 165

Haverfordwest 174 155

Hemel Hempstead 161 172

Leytonstone 153 166 + 160

Newcastle-under-Lyme 169 181

Ramsgate 198 164

Slough 152 155

Surrey Quays 171 184

Yate 186 165

slide 10

London storesNon-London stores

Questionnaire structure

• Choice of store– Frequency of shopping at store in past two weeks– Was shopping at this store the main or subsidiary reason for trip?– When visit to this store was decided (pre-trip or during trip)– Reason for shopping at this store (store attributes and main purpose of visit)

• Trip details– Trip origin– Mode of travel– Time taken to make the trip

• Details of shopping activity– Products purchased– Spend– Number of items purchased

• Diversion– Shopping behaviour if this shop was closed– Shop brand they would use in this scenario– Inconvenience caused

• Demographics

slide 11

slide 12

Findings – Poundland and 99p Stores customer profiles

Gender

•Over two thirds of shoppers are female

–52% of UK adults are female*

•London stores have a higher proportion of male shoppers

–Poundland: 34% London, 28% non-London are male

–99p Stores: 39% London, 30% non-London are male

slide 13

INTERVIEWER ASSESSED

Base: Poundland: 2,583

33

29

67

71

0 10 20 30 40 50 60 70 80 90 100

99p and 99p Plus Stores

Poundland

% Participants

Male Female

99p and 99p Plus Stores: 2,876

* Census: Annual Mid-year Population Estimates, 2014

Age

•Similar customer age range profile for both Parties with 15-18% in each ten year age band from 25 to 75 years

–Slightly older age profiles than UK adult population*

slide 14

QUESTION: “Which one of the following age groups do you belong to?”

Base: Poundland: 2,58399p and 99p Plus Stores: 2,876

* Census: Annual Mid-

2

9

16 16 17 17 16

4 32

8

1816 17

1517

423

11

16 17 1714

11

4 6

0

10

20

30

40

16-17 18-24 25-34 35-44 45-54 55-64 65-74 75-79 80+

% Participants

Poundland


UK

year Population Estimates, 2014

• Similar household incomes for customers of both stores–18% of Poundland customers and 15% of 99p Stores customers have household incomes over £30k

• London stores have a higher proportion of higher income shoppers:– Poundland: London 23% / non-London 14% over £30k; 99p Stores London 20% / non-London 13% over £30k

Household income

slide 15

QUESTION: “Which of the following ranges best represents your household’s total income from all sources (incl. earnings, pensions, benefits and tax credits) over the last 12 months? Please tell us the amount your household receives before anything is taken away for income tax, national insurance,

6

11

1513 14

85

3 2

24

6

1315 15 14

8

42 1

22

0

10

20

30

40

Under

£4,999

£5,000 to

£9,999

£10,000 to

£14,999

£15,000 to

£19,999

£20,000 to

£29,999

£30,000 to

£39,999

£40,000 to

£49,999

£50,000 to

£74,999

£75,000 or

over

Refused/not

given

% Participants

Poundland


council tax etc?”


Means*:• Poundland: £23k • 99p Stores: £20k

Medians:• Poundland: £10-£15k • 99p Stores: £10-£15k* Based on midpoints, low of £2.5k and high of £90k

Socio-Economic Group (SEG)

• Derived from occupation questions

• Fewer C1s and more DEs than adult population (England Wales)*

slide 16


* Census: https://www.nomisweb.co.uk/census/2011/QS613EW/view/2092957703?cols=measures

28

14

24

34

25

16

25

34

23

30

2225

0

10

20

30

40

AB C1 C2 DE

% P

arti

cip

ants

Poundland


UK

slide 17

Findings – Choice of store

27 26

14 12

5 5

2 2*

3 3

2926

13 12

75

1 2*

3 2

0

10

20

30

40

1 2 3 4 5 6 7 8 9 10 11+

% Participants

Poundland 99p and 99p Plus Stores

Shopping frequency 1

• The majority (53% Poundland and 55% 99p Stores customers) have shopped once or twice a fortnight

slide 18

QUESTION: “Including your visit just now, how many times have you bought something from Poundland/99p Stores in the last two weeks?”

*= less than 0.5%. Base: Poundland: 2,583, 99p and 99p Plus Stores: 2,876

2.6

3.7

3.0

3.6

4.0

3.5

2.8

3.3

3.3

• Mean frequency of visits (times per two weeks) was:

Poundland

99p Stores

• Lower SEG groups were more frequent visitors than higher SEG groups:

ABC1

C2DE

• Those who went to store as only reason for trip most frequent visitors:

Only

Main

Not main

• Those who planned their visit more frequent visitors than impulse shoppers:

Planned

Impulse

Shopping frequency 2

slide 19

Differences are significant at 95% confidence level except between Poundland and 99p Stores

Was shopping at Poundland/99p Stores main reason for trip?• For 35% of Poundland customers and 39% of 99p Stores customers, shopping there was the only or main reason for making the trip that day

• London shoppers much more likely to say visit was only reason for trip:– Poundland: London 23%, non-London 16%

– 99p Stores: London 39%, non-London 12%

• Male shoppers more likely to say visit was only or main reason for trip:– 44% male, 34% female

slide 20

QUESTION: “Was your visit to Poundland/99p Stores…?”


20

17

19

18

61

65

0 10 20 30 40 50 60 70 80 90 100


Poundland

% Participants

Your only reason for making a trip today

Your main reason for making a trip today

Not your main reason for making a trip today


Differences are significant at 95% confidence level

When decided to visit

• If the visit was not the main reason* for making a trip that day, 49% at Poundland and 40% at 99p Stores decided to visit the store before setting out

• Total proportion of unplanned trips:

– 33% Poundland

– 37% 99p Stores

slide 21

QUESTION: “When did they decide to visit?”


40

49

59

51

0 10 20 30 40 50 60 70 80 90 100


Poundland

% Participants

Before setting out During the trip


* 65% of Poundland customers, 61% of 99p Stores customers

Main reason for shopping at Poundland/99p Stores• ‘It’s cheap’ was the main reason for shopping at both stores: 66% of Poundland and 62% of 99p Stores customers

• Range was also important: 18% of Poundland and 22% of 99p Stores customers

slide 22

QUESTION: “What is it about that made you want to shop here today?”

IT’S CHEAP(affordable; cheaper than other shops; don’t spend too much; promotions/deals/offers; saves me money; value for money etc.)

LOCATION(close to other shops/places I go; easy/convenient for me to get to; nearby; on my way etc.)

RANGE(availability/reliable supply/know I can get what I want; good variety of products to choose from; only place I can get these products; product quality is ok/good; stocks well-known brands etc.)

RETAILER’S REPUTATION(household name; trusted brand)

SHOPPING EXPERIENCE(good customer service; pleasant shopping environment; well-trained and helpful staff etc.)

SIMPLE OFFER(all products are the same price

66

9

18

* 2 1 2

62

11

22

* 1 1 10

10

20

30

40

50

60

70

80

90

100

It's cheap Location Range Retailer's reputation

Shopping experience

Simple offer Other

% Participants

Poundland


)

* = less than 0.5%Base: Poundland: 2,58399p and 99p Plus Stores: 2,876

All reasons for shopping at Poundland/99p Stores 1• When main and other reasons are combined:

– ‘It’s cheap’ mentioned by 89% of Poundland and 86% of 99p Stores customers

– ‘Range’ mentioned by 61% of Poundland 64% of 99p Stores customers

– ‘Location’ mentioned by 31% of Poundland and 32% of 99p Stores customers

slide 23

QUESTION: “Anything else?”

IT’S CHEAP(affordable; cheaper than other shops; don’t spend too much; promotions/deals/offers; saves me money; value for money etc.)

LOCATION(close to other shops/places I go; easy/convenient for me to get to; nearby; on my way etc.)

RANGE(availability/reliable supply/know I can get what I want; good variety of products to choose from; only place I can get these products; product quality is ok/good; stocks well-known brands etc.)

RETAILER’S REPUTATION(household name; trusted brand)

SHOPPING EXPERIENCE(good customer service; pleasant shopping environment; well-trained and helpful staff etc.)

SIMPLE OFFER(all products are the same price)


89

31

61

512

83

86

32

64

3

117

20

10

20

30

40

50

60

70

80

90

100

It's cheap Location Range Retailer's reputation

Shopping experience

Simple offer Other

% Participants

Poundland



86%

88%

30%

34%

59%

64%• Females more likely than males to mention ‘range’

Female

Male

• Males more likely than females to mention ‘location’Male

Female

• C2DEs more likely than ABC1s to mention ‘It’s cheap’

C2DE

ABC1

All reasons for shopping at Poundland/99p Stores 2

slide 24


Main reason for shopping at store 1• The main reason for about a quarter of customers at each store was topping up between main household shops

• 17% at Poundland and 14% at 99p Stores were buying a one-off item

slide 25

QUESTION: “From this list, which of the following best describes your main reason for shopping at Poundland/99p Stores today? ”

RANDOMISED LIST

No reason –just went in to browse/see what they had

To buy a one-off item

To buy a treat for you and/or someone else

To buy something to eat/drink straightaway

To buy something you couldn’t get anywhere else

To buy something you needed urgently (e.g. something you forgot to get somewhere else/you’d run out of and needed straightaway)

To do your main (weekly/monthly) household shop for a particular type of product (e.g. you prefer to buy all your cleaning products from Poundland/99p Stores even though you do your main food shopping somewhere else)

To ‘top up’ with items in between main (weekly/monthly) household shops)


1

6

8

11

10

12

14

14

24

2

5

7

9

11

11

13

17

25

0 10 20 30 40

Another reason

To buy something you couldn't get anywhere else

To buy a treat for you and/or someone else

To buy something to eat/drink straightaway

To do your main (weekly/monthly) household shop for a particular type of product

No reason -just went in to browse/see what they had

To buy something you needed urgently

To buy a one-off item

To 'top up' with items in between main (weekly/monthly) household shops

% Participants

Poundland



22%

26%

8%

11%

8%

15%

21%

27%

Main reason for shopping at store 2• C2DEs more likely than ABC1s to be topping up

C2DE

ABC1

• Males more likely than women to buy something to eat/drink straightaway

Males

Females

• Females more likely than males to be doing main weekly/monthly shop

Females

Males

• Females more likely than males to be topping up

Females

Males

slide 26


slide 27

Findings – Trip details

Trip origin

• Four fifths of customers of both stores start their trip from home

• London Poundland shoppers less likely to start from home:

– 74% London, 83% non-London

slide 28

QUESTION: “To make this trip to Poundland/99p Stores today, where did you set out from?

81

10

2 3 4

80

82 5 5

0

10

20

30

40

50

60

70

80

90

100

Home Work / workplace / office

School / college / university

Other shops / service providers

Somewhere else

% Participants

Poundland


”


Mode used 1

• Car/van, walk and bus were the dominant modes used

–For Poundland, 38% used car/van, 32% walked, and 23% used bus

–For 99p Stores, 34% walked, 33% used car/van and 26% used bus

slide 29

QUESTION: “How did you make this trip?”


1

*

1

1

1

2

26

34

33

1

*

1

1

1

2

23

32

38

0 10 20 30 40 50 60 70 80 90 100

Other

Motorbike

Tram

Taxi/minicab

Bicycle

Train (incl. underground/metro)

Bus

On foot/walked the whole way

Car/van

% Participants

Poundland


* = less than 0.5%

Mode used 2

• Public transport more likely to be used for London stores and Car/van more likely to be used for non-London stores

• Car/van more likely to be used if not main reason for visit:

slide 30

24

31

21

31

1

5

1

6

41

15

42

24

99p Stores non-London

99p Stores London

Poundland non-London

Poundland London

Bus Train Car/van

27%

40%

Main/only reason

Not main reason


Trip length 1

• For over half of customers their trip length was 10 minutes or under:

–54% Poundland

–52% 99p Stores

• The mean trip length was 15 minutes for Poundland customers and 16 minutes for 99p Stores customers

slide 31

QUESTION: “How long did the trip take?”


2628

1715

10

5

24

28

16 1511

6

0

10

20

30

40

5 minutes or under

6-10 minutes 11-15 minutes

16-20 minutes

21-30 minutes

Over 30 minutes

% Participants

Poundland 99p and 99p Plus Stores


30 minutes

20 minutes

11 minutes

15 minutes

Train (incl. underground/metro)

Bus

On foot/walked the whole way

Car/van

Trip length 2

• Trip was longer if visit was not the main reason

• Trip was longer if not planned

• Public transport trips longer than car/van trips

slide 32

14 minutes

16 minutes

Main/only reason

Not main reason


14 minutes

17 minutes

Planned

Impulse

slide 33

Findings – Details of shopping activity

Product categories purchased

• Wide range of product categories purchased

• ‘Groceries for home’ and ‘household basics and cleaning’ were the two main product categories for each store

slide 34

QUESTION: “Which of the following product categories did you buy from Poundland/99p Stores today?” / “Anything else?”

RANDOMISED LIST


Cards, gifts and flowers, stationery, crafting and party products

Clothing and accessories

DIY & gardening products

Food and drink to consume immediately

Groceries for home (incl. food and drink for home, chilled items, tins, packets, jars, soft drinks, snacks)

Health & beauty and baby products (toiletries, cosmetics, health/wellbeing, babyfoodand accessories)

Homewaresand pet (including pots and pans, baking implements, pet and bird food, pet toys)

Household basics and cleaning (incl. batteries, kitchen towels, toilet tissue, cleaning/washing products)

Toys and entertainment (books, games, CDs, DVDs, seasonal products e.g. Christmas, Halloween, Easter)

1

2

6

9

13

14

23

24

33

36

3

2

9

9

11

17

23

26

32

33

0 10 20 30 40 50 60 70 80 90100

Other

Clothing and accessories

Cards, gifts and flowers, stationery, crafting and party products

Toys and entertainment

DIY & gardening products

Homewares and pet

Food and drink to consume immediately

Health & beauty and baby products

Household basics and cleaning

Groceries for home

% Participants

Poundland


Other

Spend 1

• Poundland customers tend to spend more than 99p Stores customers:

– 38% and 33% respectively spend over £5

slide 35

QUESTION: “How much did you spend in Poundland/99p Stores today?”


13

28

2219 19

16

30

21

16 17

0

10

20

30

40

Up to £1 £1.01 to £3 £3.01 to £5 £5.01 to £9 £9.01+

% Participants

Poundland



£5.85

£6.67

£5.91

£5.89

£4.95

£5.89

£4.86

£5.09

£5.90

£5.73

£6.27

• The mean spend was £5.84 at Poundland and £5.33 at 99p Stores

• Mean spend was higher in London stores:

Poundland London


99p Stores London


• Women spend more than men:Male

Female

• Mean spend largely correlates with household income:Under £10,000

£10,000-£19,999

£20,000-£29,999

£30,000-£39,999

£40,000

Spend 2

slide 36Differences are significant at 95% confidence level

Number of items purchased 1

• Poundland customers tend to buy more items than 99p Stores customers

–39% and 31% respectively buy 6+ items

• 99p Stores customers significantly more likely than Poundland customers to buy one item

–16% and 12% respectively

slide 37

QUESTION: “And how many items did you buy in Poundland/99p Stores today?”


1215

1211 11

20 19

1617

1411 11

16 15

0

10

20

30

40

1 2 3 4 5 6-9 10+

% Participants

items

Poundland



5.9

4.9

5.0

5.8

5.8

6.5

5.3

5.9

• Mean number of items purchased Poundland

99p Stores

• Mean number of items purchased was higher in London stores:Poundland London


99p Stores London


• Women bought more items than men (which links to their higher spend):Males

Females

Number of items purchased 2

slide 38


slide 39

Findings – Diversion

Diversion questions 1

• Participants reminded of context, eg

–“Earlier, you told me that your visit to 99p Stores was your only reason for making a trip today”

–“Earlier, you told me you decided to visit Poundland today before you set out” etc

• Answer codes based on whether singleor multipleitems purchased, ie

slide 40

“If you had known before you set out today that Poundland/99p Stores was closed for several months for refurbishment, and so were all the other Poundland/99p Stores branches, what would you have done instead?”

– I would have bought all of the itemssomewhere else

– I would have bought some of the itemssomewhere else (even if I bought less or more of each item)

– I wouldn’t have bought any of the items

– I would have bought the item somewhere else

– I wouldn’t have bought the item


• Of those who bought one item, 17% of Poundland and 18% of 99p Stores customers would not have purchased

• Of those who bought multiple items, 12% each of Poundland and 99p Stores customers would not have purchased

slide 41

Base: Poundland: 2,256, 99p and 99p Plus Stores: 2,408

Base: Poundland: 317, 99p and 99p Plus Stores: 445

Single item

Multiple items

77

77

18

17

5

6

0 10 20 30 40 50 60 70 80 90 100


Poundland

% Participants

I would have bought the item somewhere else

I wouldn't have bought the item

Don't know

75

71

10

13

12

12

3

3

0 10 20 30 40 50 60 70 80 90 100


Poundland

% Participants

I would have bought all of the items somewhere else

I would have bought some of the items somewhere else (even if I bought less or more of each item)

I wouldn't have bought any of the items

Don't know


•Those who bought multiple items, but would now buy fewer, were asked how many they would have bought

–Mean numbers of items was 4.1 for both stores, about half the number they did purchase

slide 42

QUESTION: “How many of those items would you have bought?”UNPROMPTED

Base: Poundland: 299

8.2

4.1

8.0

4.1

did buy

would buy

did buy

would buy

99p Stores

Poundland

99p and 99p Plus Stores: 244

Diversion destinations

• Asked of those who would divert

–43% of Poundland customers would divert to 99p Stores

–49% of 99p Stores customers would divert to Poundland

slide 43

QUESTION: “Where would you have bought the item(s) instead?”UNPROMPTED


Chart shows stores with 2% or more diverting to

2

2

2

2

2

4

3

6

5

7

12

3

49

2

2

2

2

2

1

5

6

6

8

15

43

3

0 10 20 30 40 50 60 70 80 90 100

Lidl

Poundstretcher

Home Bargains

Morrisons

B&M Bargains

Iceland

Sainsbury's

Poundworld

Asda

Wilkinson/Wilko

Tesco

99p Stores

Poundland

% Participants

Poundland


them

Overall Diversion ratios

• Spend weighted

– Poundland to 99p Stores 35%

– 99p Stores to Poundland 41%

• Not spend weighted

– Poundland to 99p Stores 35%

– 99p Stores to Poundland 42%

slide 44

Diversion ratios

slide 45

Spend weighted Not spend weighted

Poundland to 99p Stores

99p Stores to Poundland

Poundland to 99p Stores

99p Stores to Poundland

Ayr 43% 41% 32% 40%

Basingstoke 48% 22% 47% 25%

Croydon 22%CH 51%NE 44%

23%CH 48%NE 43%

Dudley 37% 30% 34% 32%

Eastleigh 29% 35% 27% 41%

Great Yarmouth 29% 39% 29% 43%

Harlow 37% 50% 42% 51%

Haverfordwest 24% 48% 28% 42%

Hemel Hempstead 39% 43% 40% 53%

Leytonstone 29%HR 52%WR 25%

25%HR 48%WR 22%

Newcastle-under-Lyme 41% 33% 40% 37%

Ramsgate 66% 60% 62% 58%

Slough 49% 46% 47% 43%

Surrey Quays 28% 47% 29% 49%

Yate 22% 39% 25% 32%

CH = Crown Hill, NE = North End, HR = High Road, WR = Woodgrange Road

Diversion ratios – Hemel Hempstead

slide 46

PoundlandSpend

weightedNot spend weighted

99p Stores 39% 40%

Poundworld 29% 27%

B&M Bargains 8% 8%

Tesco 6% 6%

Asda 4% 4%

Poundstretcher 2% 1%

Aldi 1% 1%

Boots 1% 2%

Wilkinson/Wilko 1% 1%

Other third party 3% 4%

Not spent 5% 7%

99p StoresSpend

weightedNot spend weighted

Poundland 43% 53%

Poundworld 42% 31%

B&M Bargains 3% 2%

Asda 1% 1%

Sainsbury’s 1% 1%

Sam99p 1% 1%

Tesco 1% 1%

Wilkinson/Wilko 1% 1%

Other third party 0% 3%

Not spent 7% 6%

Likely competitors: Asda, B&M, Iceland, Poundworld, Sainsbury's, Savers, Tesco(1)/Tesco Express(2), Wilkinson/Wilko

Note: rounding means that columns sum to 100% +/-1

Inconvenience of closure 1

• Over half of customers of each store would find it fairly or very inconvenient

–62% Poundland

–57% 99p Stores

slide 47

QUESTION: “Again imagining that Poundland/99p Stores was closed for several months for refurbishment, and so were all its other branches, for you personally would this be … ?”

ANSWER CODES REVERSED FOR HALF SAMPLE


26

33

31

29

21

19

20

17

3

1

0 10 20 30 40 50 60 70 80 90 100


Poundland

% Participants

Very inconvenient Fairly inconvenient Not very inconvenient Not at all inconvenient Don't know


62%

56%

61%

57%

48%

66%

56%

65%

• Inconvenience* was higher if visit was main/only reason for trip

Main/only reason

Not main reason

• Inconvenience was higher if planned trip Planned

Impulse

• Inconvenience was higher for femalesMales

Females

• Inconvenience was higher for C2DEs

ABC1

C2DE

Inconvenience of closure 2

slide 48


* Very inconvenient and fairly inconvenient

slide 49

Findings – Other customer profiles

Internet use

•Over a fifth of customers of both stores never use the internet

–21% Poundland and 22% 99p Stores

–This compares to 11% overall in the UK*

slide 50

QUESTION: “How often, if at all, do you personally use the internet?”


22

1

1

2

4

7

6

58

21

2

1

1

3

8

4

60

0 10 20 30 40 50 60 70 80 90 100

Never

Less than once a month

About once a month

Once a fortnight

Once a week

2-4 days a week

5-6 days a week

Every day

% Participants

Poundland



*Office of National Statistics, Internet Users 2015: http://www.ons.gov.uk/ons/rel/rdit2/internet-users/2015/stb-ia-2015.html

Employment status

• About half the sample are employed:

–49% of Poundland customers and 51% of 99p Stores customers

• More retired and fewer employed than for adults in England and Wales overall**

slide 51

QUESTION: “What is your employment status?”

* = less than 0.5%Base: Poundland: 2,583

1

8

*

26

1

4

5

4

16

35

1

9

1

27

*

4

5

4

17

32

0 10 20 30 40 50 60 70 80 90 100

Other

Looking after family/home

Retired unpaid voluntary work

Retired

Part-time student

Full-time student

Not working -not looking for work

Not working -looking for work

Working part-time (8-29 hours a week)

Working full-time (30+ hours a week)

% Participants

Poundland



Poundland 99p Stores UK

employedretirednot workingstudent

49%28%19%4%

51%26%17%5%

62%14%13%9%**2011 Census: Economic activity, local authorities in England and Wales

Occupation

•19% of shoppers of both stores retired

slide 52

QUESTION: “Which of the following best describes the occupation of the main income earner in your household?”(previous if retired on private pension or unemployed less than 6 months)


A

B

C1

C2

Previous occupation

D

E

Previous occupation

7

13

6

6

1

13

21

13

15

7

6

11

8

7

2

13

20

11

14

9

0 10 20 30 40 50 60 70 80 90 100

None of above

Retired on state pension

Retired private pension

Unemployed for 6 months or more

Unemployed for less than 6 months

Semi-skilled worker; apprentice or trainee to skilled worker

Skilled manual worker; other manual worker with responsibility for other people; or self-employed with no employees

Junior management; or self-employed with 1-4 employees (in addition to self)

Middle management executive in large organisation; principal officer in local government and civil service; or self-employed

Work in a profession; very senior manager in business or commerce; top-level civil servant; or self-employed with 25+ employees

% Participants

Poundland


E

slide 53

Appendix

Appendix A: Locations and hoursPoundland 99p Stores

Dudley31-32 High Street, Dudley, West Midlands, DY1 1PS

M-S 08:00-18:00Sun: 10:00-16:00

228/233, High Street, Dudley DY11PQ M-S 08:00-18:00Sun: 10:00-16:00

CroydonUnit 140 Whitgift Centre, Croydon, Greater London, CR0 1UT

M-S 07:30-19:00Sun: 11:00-17:00

43435, Crown Hill, Croydon, Surrey CR01RZ M-S 09:00-20:00Sun: 11:00-17:00

139 North End, Croydon, London, Surrey CR01TN

M-S 09:00-20:00Sun: 11:00-17:00

Harlow17 Harvey Centre, Harlow, Essex, CM20 1XR M-S 09:00-17:30

Sun: 10:00-16:0027-29, Broad Walk, Harlow, Essex CM201JF M-S 09:00-18:00

Sun: 10:00-16:00

Hemel HempsteadUnit 2 Town Square, Hemel Hempstead, Hertfordshire, HP1 1BB

M-S 08:30-17:30Sun: 11:00-17:00

Edmonds Parade, 252-254 The Marlowes, Edmonds Prade, Hemel Hempstead HP11BL

M-S 08:30-18:00Sun: 10:00-18:00

Newcastle-under-Lyme

Unit 22 Castle Walk, Newcastle Under Lyme, Staffordshire, ST5 1AN

M-S 08:00-18:00Sun: 10:00-16:00

94-96, High Street, Newcastle Under Lyme, Staffordshire ST51QF

M-S 09:00-18:00Sun: 10:00-16:00

Ramsgate21-23 High Street, Ramsgate, Kent, CT11 9AG M-S 08:30-18:00

Sun: 10:00-16:3012-14 High Street, Ramsgate, Kent CT119AE M-S 08:30-18:00

Sun: 10:00-16:00

AyrUnit 2, 88-104 High Street, Ayr, Ayrshire, KA7 1PQ

M-S 08:30-17:30Sun: 10:30-17:00

Unit 10, Central Shopping Centre, Kyle Street, Ayr, Scotland KA71TD

M-S 09:00-18:00Sun: 11:00-17:00

BasingstokeUnit 2-3 Chiswick House, Basingstoke, Hampshire, RG21 7LD

M-S 08:30-19:00Sun: 10:30-17:00

Westminster House, 106 Festival Place, Town Centre, Basingstoke RG217LS

M-S 09:00-19:00Sun: 11:00-17:00

Eastleigh19-23 Leigh Road, Eastleigh, Hampshire, SO50 9FF

M-S 08:30-18:00Sun: 10:00-16:00

MSU4, Swan Centre, Eastleigh, Southampton SO505SG

M-S 09:00-17:30Sun: 10:00-16:00

Slough192 High Street, Slough, Berkshire, SL1 1JS M-S 08:30-18:00

Sun: 10:30-16:30210-216 High Street, Slough, Berkshire SL11JS

M-S 09:00-18:00Sun: 10:00-18:00

Great Yarmouth23-24 Market Place Great Yarmouth NR30 1LY

M-S 08:00-18:00Sun: 10:00-16:00

6, Regent Road, Great Yarmouth, Norfolk NR302AF

M-S 08:30-18:00Sun: 10:00-16:00

Haverfordwest21 Riverside Quay, Haverfordwest, Pembrokeshire, SA61 2LJ

M-S 08:00-18:00Sun: 10:00-16:00

52 Castle Square, Haverfordwest, Dyfed, Pembrokeshire SA612AE

M-S 09:00-18:00Sun: 10:00-16:00

Yate7-11 South Walk, Yate Shopping Centre, Yate, Gloucestershire, BS37 4AU

M-S 08:00-18:00Sun: 10:00-16:00

21, South Walk, Yate Shopping Centre, South Gloucestershire BS374AX

M-S 08:00-18:00Sun: 10:00-16:00

Leytonstone650-652 High Road, Leytonstone, London, E11 3AA

M-S 08:30-19:00Sun: 11:00-17:00

628-632, High Road, Leytonstone, Greater London E11 3DA

M-S 09:00-20:00Sun: 11:00-17:00

22-26 Woodgrange Road Forest Gate E7 0QH

M-S 09:00-19:00 Sun 11.00-17.00

Surrey QuaysUnit LSU3, Surrey Quays Shopping Centre, Surrey Quays, London, SE16 7LL

M-S 09:00-19:00Sun: 11:00-17:00

Unit 1/2 (39/41) Surrey Quay Shopping Centre, Redriff Road, London, SE16 7LL

M-S 08:00-18:00Sun: 10:00-16:00

slide 54

slide 55

Documents

Findings from customer exit surveys - gov.uk · • Questionnaire pilot in Croydon on 10 June 2015 – Questionnaire was found to work well; no signs that respondents had any problems