Poundland is set to implement a new pricing strategy of £1, £2, and £3 at its UK stores, simplifying its pricing structure. This move follows the acquisition of Poundland by investment firm Gordon Brothers and will be gradually introduced to all Poundland UK outlets by September, following a successful trial at 17 stores in the West Midlands.
During the trial phase, prices were lowered significantly, and the product range was refocused on popular items. The percentage of grocery items priced at £1 was raised to over 60%. Upon full implementation, approximately 60% of grocery products will be priced at £1, 20% at £2, and 20% at £3.
Examples of £1 products across various categories include Pink Stuff Paste (850g), Cif Lemon Cream cleaner (500ml), Heinz Baked Beans (415g), John West Tuna (125g), Haribo Starmix (160g), and Werther’s Original (135g).
The transition to the new pricing structure will begin with snacks, ambient drinks, pet food, and household items this week, with other categories like confectionery, health and beauty, and chocolate, biscuits, and cakes to follow by the end of September.
Poundland reports a reduction of over 25% in shoplifting incidents in the trial stores after removing higher-priced £5 items. One shoplifter at the Park Street store in Walsall complained about the delisting of the item they regularly stole.
Barry Williams, Poundland’s managing director, stated that customer feedback from the trials highlighted the preference for a straightforward and value-focused Poundland. He expressed confidence in the future success of Poundland with a renewed focus on delivering exceptional value to customers.
Recently, Poundland avoided administration after receiving approval for a restructuring plan in court. The company revealed plans to close 68 stores affecting around 1,000 employees, shut down distribution sites in Darton, South Yorkshire, and Bilston, West Midlands, and discontinue online sales through Poundland.co.uk and its Perks app.
Williams expressed gratitude to the court and creditors for their involvement in the process and emphasized support for affected employees during the streamlining process. Poundland aims to refocus on growth by enhancing product ranges, reducing prices, and delivering the straightforward and value-driven shopping experience customers desire.
