Poundworld has announced it will be launching a new online shopping site after disagreements over its existing e-commerce channel, Poundshop.com.
Poundshop.com was launched just six months ago by Poundworld and Poundland founder Steve Smith. However, the partners are parting ways after a disagreement over the operations, online trading, web platform and marketing of the website, which is overseen by Smith. Poundworld provides its branding, product images and stock for the online venture.
“A mutual and constructive decision has been made by both parties for Poundworld to end its association with the Poundshop.com brand,” said Chris Edward Jr, trading director at Poundworld.
“We are still committed to online and Poundworld is putting plans in place to go it alone with our own online venture. By doing so, this will enable us to have full control over all aspects of the business ensuring that the site reflects our ongoing brand values and strategy.”
He added: “We wish Steve every success for the future.”
Poundshop.com delivered Poundworld goods for a minimum order of £10 and with a flat delivery free of £3.65.
The site crashed when it launched in February, as bargain hunters flocked to the site.
Poundworld, originally called Everything’s £1, launched in 2004 and has more than 200 stores in the UK.
Smith founded Poundworld rival Poundland in Burton-upon-Trent in 1990 with Dave Dodd. The company was sold to private equity firm Advent International in 2002, which sold the business to buyout company Warbug Pincus in 2010 in a £200 million deal. It floated on the London Stock Exchange this year.
Poundland does not currently have an e-commerce offering.