Published: Thursday, 11th June, 2009 4:38pm

Retail traders enjoy the 'Woolies effect'

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READING"S value stores have been picking up trade from former Woolworth customers.

Since the Broad street store closed at the end of January other town centre stores in the value market have been gaining in Woolies" absence.

Toy shop, The Entertainer, has seen the clearest benefit. Rachel Walsh, manager of Reading shop in Broad Street said: 'We have seen an increase in trade, especially the pocket money stock, little bits and pieces.

'The Entertainer does not overprice its toys and Woolies didn"t. We are catching their trade. They can come here and still get cheaper toys.'

She said spending was still going on through recession and she didn"t expect that to change. She added: 'Parents will always put their children first. Come Christmas there will still be good trade for us.'

Spokesperson for 99p stores, Gerry Loughran said the Woolies effect was especially strong at its Reading store. Around the UK 99p Stores had opened in 17 former Woolies units.

He added: 'We have got a large variety of customers now. Value really is classless.'

Retail operations director for Poundland Tim McDonnell said it has taken over 15 Woolworth stores and 150 Woolies staff but he said the Woolies effect on business was less clear.

He said: 'The interesting thing is that whole market has moved towards the value sector.'

Guy Douglas, who manages the Reading business improvement district, said: 'Anybody in the toy business will be rubbing their hands and also anybody in the homewares business, they have done very well and they are continuing to do very well.