The City roundup video: Poundland's £55m bid for 99p Stores

Video: Oscar Williams-Grut provides a run-down of the day's major news from the City

A Poundland in south London. (CARL COURT | AFP | Getty Images)

Don't miss out on the goings on in the business world, with our daily round-up of the biggest news from the City.

Britain's love affair with discount shops shows no signs of stopping, with Poundland today making a 55 million pound bid for rival 99p Stores. The combined group with have around 750 shops across the country, making it one of the biggest High Street chains in the UK.

But just how do shops like Poundland make their money? There are three key factors - watch the video to find out:

It's worth noting that 99p Stores don't make a lot of money. Poundland made a profit of just £21.5 million last year despite sales of almost a billion pounds.