300+
Stores

2 million+
Customers p/w

£422.3m
Turnover (2015)

6000+
Employees

300+
Stores

2 million+
Customers p/w

£422.3m
Turnover (2015)

6000+
Employees

Summary:

Poundworld partnered with LDC in order to develop a better understanding of whether the brand had a strong appeal with passers-by and to see if their stores converted well in certain formats – be it high street, shopping centres or retail parks.

By installing LDC’s Footfall sensors, in multiple locations, Poundworld were able to see how effective their conversion rates were and optimise store operations and performance. Furthermore, in the long term this data is going to support future sales forecasting and expansion plans.

Today, LocalDataOnline (LDO) and the Footfall Dashboard are used on a near daily basis from their head office, allowing them to understand what is happening ‘on the street’ at any hour, day, week and month.

Poundworld transparent background

Poundworld is one of Britain’s leading single price point store chains, with over 300 stores operating in high streets, retail parks and shopping centres across Great Britain.

In 2015, Poundworld’s revenue grew to £422.3 million and currently employs over 6000 people.

Across its nationwide network of stores, Poundworld serves over two million customers every week and continues to expand, with plans to double its store network in the next five years.

Challenge 1:

Understanding how well Poundworld converts passers-by into customers.

Poundworld were keen to understand how successful they are at converting passers-by into customers. As with any retailer, increasing the number of customers who enter the store and successfully promoting additional products will ultimately increase the average basket value of each customer (and revenue).

Solution:

Poundworld installed a number of LDC’s footfall sensors throughout their store portfolio. Soon after the sensors were installed and calibrated, the Poundworld team were able to track exactly how many people were walking past their store on an hourly, daily, weekly and monthly basis.

As a next step sales and footfall data were overlaid in order to identify recurring patterns as well as to better understand the relationship between hourly transactions and passing footfall.

The image below is an example of how footfall and sales performance data is displayed within LDO.

Example Footfall Conversion Data
Example footfall and sales transaction data in LDO.

“Through the LDC dashboards we can see how successful we are at converting passers-by into customers, from this data we can look at shift patterns and in-store processes to better manage our workforce, none of which was previously available.”
– Kieran Gwynnette, Property Analyst

“LDC was the obvious choice for Poundworld when statistical accuracy was presented. i.e. manual counts vs camera counts”

– Kieran Gwynnette, Property Analyst

Challenge 2:

Improving in-store performance and workforce management.

Poundworld, who employ over 6000 employees, were interested in discovering whether footfall data could help them to better manage their workforce across the entire store network,

Key questions that Poundworld wanted to address were:

• Are our shift patterns efficient?
• Do we have enough staff to cope with high demand?
• Do we have too many staff on shift when the store is quiet?

Solution:

By installing the Footfall sensors, counting passers-by and overlaying transaction volumes over a period of time, Poundworld has been able to identify stores where further efficiencies could be made.

It was the first time that Poundworld had actual evidence to support shift pattern and in-store operational decisions. Previously, this information, if available at all, was anecdotal, sporadically received or only glimpsed at from a financial point of view.

“Working at head office the LDC Dashboards allow us to obtain an understanding of what is happening ‘on the street’, this ability was previously unavailable to us.”
– Kieran Gwynnette, Property Analyst

“Whilst we as a business are evolving so too is the partnership with LDC, our weekly calls allow free thinking regarding potential solutions to current problems being faced and a chance to discuss new ideas. With LDC receptive to this way of working and indeed encouraging it we at Poundworld feel that we are a valued customer and not just another brick in the wall.”
– Kieran Gwynnette, Property Analyst

Challenge 3:

Sales Forecasting

With plans to significantly expand their store presence over the next three years, Poundworld’s objective was to develop an accurate sales forecasting process for current stores as well as for future stores.

Through a combination of internal data, external demographics and LDC’s retail locations and footfall data Poundworld is building models for forecasting expected profitability as well as identifying suitable locations to deliver the required level of sales.

Solution:

Using LDO and LDC’s big data capabilities, Poundworld have been able to further understand correlations between sales transactions, conversion rates and footfall driving sales and profitability. These calculations have become a key reference for Poundworld when they develop assumptions for the likely performance of new stores (based on data of similar locations) as well as for their current portfolio.

The ability to overlay footfall data and track competitors’ moves has enabled Poundworld to understand how a new competitor’s store opening affects trading patterns and this has become an invaluable part of internal decision making processes.

“Since its inception into the business LDC has worked with Poundworld. Whilst this seems an obvious thing to say, very few businesses truly achieve the partnership levels that we, as a fledgling data driven company require. LDC have worked tirelessly to ensure the data received is both accurate and timely.”
– Kieran Gwynnette, Property Analyst

Footfall Market Harborough

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