Hermes UK has won a home delivery contract with Poundland Group, Europe’s largest single-price discount retailer, after Poundland announced last week that it will be testing an online shopping service.
As part of the agreement, Hermes will provide a 4-5 working day delivery service to all consumers based in the UK.
Poundland offers all kinds of products at the single price of £1. The new online store comprises over 2,000 products, including a mixture of household brands and Poundland’s unique ranges.
While the service has no minimum order value, customers spending less than £50 will have to pay a delivery fee of £4. In turn, customers ordering products for a value exceeding £50 will not be charged for delivery.
Mark Pettit, Sales & Marketing Director at Hermes, said: “By utilising our specialist knowledge and experience, we can supply industry-leading delivery solutions that provide exceptional value to any organisation. We look forward to helping Poundland succeed in this new online venture.”
Jim McCarthy, Poundland’s Chief Executive, commented: “The online shopping market is a rapidly growing channel and one which could provide a significant potential opportunity for us. This trial is an important first step towards giving more customers access to our amazing value. We are delighted to team up with Hermes to offer this exciting service.”
Last month, Poundland was given provisional approval by the British Competition and Markets Authority (CMA) for the anticipated acquisition of rival budget retailer 99p Stores Limited (99p). This would create a combined network of around 800 UK stores. A four-month review by CMA showed that customers would not suffer from the takeover, in contrast to a previous investigation claiming that a merger of the two stores could mean a reduction in quality, fewer promotions or the closure of stores.
