Q&A: Poundland chief executive Jim McCarthy

Poundland hasn’t revealed Christmas figures. How did you do?

We had a record Christmas and like-for-likes were good. We never hit my expectations, but you have to aim high.

What has certainly happened in the last 12 months is that the consumer has really felt the squeeze and confidence is low, while disposable income is challenged. The retailer has to cope with a customer that wants more for less.

What do you think this year has in store for retailers?

I expect more of the same this year. Bills will be going up, which is compounded by the increasing fuel price that has caused petrol consumption to go down and consumers are therefore planning their journeys more carefully.

Demand for low prices and value has always been high but I think it’s higher now than I can remember. The consumer wants more. If a retailer can deliver that it will do better than its rivals. So discount retailing is possibly the best place to be.

Many retailers’ models are not as lean as value retailers’. Several businesses have recently gone bust because of their model. But those that are more lean and fit and meet the consumers’ needs will prosper.

How do you think Poundland will perform this year?

I think we are going to have another good year. We’ve just finalised our budget for 2014. We need to be constantly fleet of foot and meet the customers’ needs to deliver amazing everyday value.

Poundland has plans to launch its first store on the continent. Have you decided where and when it will be?

There are several countries where the opportunities for Poundland are optimum.

They are countries where a discount retailer like Poundland would be very successful, but you have to spend a lot of time underpinning what to do.

You have to get it absolutely right. There are some retailers that have launched in Europe and it hasn’t worked.

We don’t want to do that.