What is the likelihood of being successful if I open a pound shop? I’ve seen a lot of them about and they look profitable. I own a few small shops of various kinds, but know nothing about this business.

If anyone could explain this to me and give me tips, it would be much appreciated.

Pound shops sell a variety of items for one pound and at some, 99p. The current economic recession has made pound shops more attractive to consumers because they can get general goods cheap.

Here are some guidelines and suggestions about opening and running a pound shop:

1. Find a location that is easily accessible to customers.
2. Plan what kind of merchandise you will sell. Forecast seasonal merchandise you will also want to sell at certain times of the year.
3. Find a supplier or suppliers. Check wholesale websites for cheap items, and especially look on Sale and Clearance pages for cheap merchandise.
4. A pound shop owner should build relationships with a few reliable suppliers that he or she deals with on a regular basis. This will ensure that the shop will always be well stocked and will get timely shipments.
5. Focus on management of the business. You will need to fill out proper paperwork, hire staff, and order equipment.
6. Keep a close eye on your finances and profit margins. You will have to pay rent, taxes and salaries while trying to make a profit. You may have to roll up your sleeves and physically help the store get on its feet.

I know that inflation is affecting retailers. How is it affecting pound shops?

Pound shops certainly face challenges when it comes to inflation. There are some things owners can do to meet these challenges, as well:

1. The most obvious challenge is having fixed prices. When inflation goes up, the retailer has to pay more for a product, but still sell it at the one-pound price.
2. An advantage to inflation is that pound shops can now sell products that were not available to sell before.
3. Some manufacturers have agreed to produce special sizes of their products to be sold for a pound.
4. Pound shop owners will always draw business because of the specialty of their prices and merchandise selection.