99p Stores SWOT Analysis, USP & Competitors

99p Stores

Parent Company

Private ownership by Nadir Lalani

Category

Discount stores

Sector

Lifestyle and Retail

Tagline/ Slogan

Quality products under a pound!

USP

Price under a pound

99p Stores STP

Segment

Semi-urban, Middle income group households

Target Group

Price sensitive customers

Positioning

Value for money

99p Stores SWOT Analysis

Strengths

1.  Wide range of products available for less than £1

2. Very cheap products under a pound

3. Wide supplier network that helps them source products at very low cost to their stores and helps them sell at low price

4. Staff very good at selling and hence can push sales up

5. The store serves over 1.5 million customers every week

Weaknesses

1. High customer and product overcrowding

2. People perceive it as cheap and this might hurt attracting new customers who do not want to be associated with the cheapest store

Opportunities

1. With the global recession and spending cuts, they have a huge potential to tap into new customers

2. Can work towards brand building and removing the stigma that it is a cheap store

Threats

1. There has been opposition regarding setting up of pound shops like 99p as people think that they tone down the glamour of the High street.

2. There has been criticism about their safety procedures and they have been fined in two separate cases of poor quality product in 2005

99p Stores Competition

Competitors

1.  Poundland

2. The Pound Shop

3. Poundzone