Poundland is set to implement a new pricing strategy in its UK stores, simplifying prices to £1, £2, or £3. This change comes as the discount retailer returns to its core values following its acquisition by investment firm Gordon Brothers. The rollout of the new pricing structure will occur gradually in all Poundland stores across the UK, having undergone successful testing at 17 stores in the West Midlands.
During the trial phase, prices were reduced significantly, and the product selection was refocused on popular customer choices. The shift will see over 60% of grocery items priced at £1, with 20% at £2 and another 20% at £3 once fully implemented.
Some examples of products priced at £1 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) across household, grocery, and confectionery categories.
The new pricing structure will first apply to snacks, ambient drinks, pet food, and household goods this week, with the transition extending to other categories like confectionery, health and beauty, and chocolate, biscuits, and cakes by the end of September.
Poundland reports a significant decrease in shoplifting incidents by removing higher-priced £5 items, with shoplifting reduced by over 25% in the trial stores. The company’s managing director, Barry Williams, expressed confidence in the simplified pricing model, emphasizing the positive feedback received during the pilot phase.
Following a restructuring plan approval by a judge, Poundland narrowly avoided administration and is now moving forward with store closures affecting approximately 1,000 employees. Additionally, the company will shutter its frozen and digital distribution site in Darton, South Yorkshire, and another warehouse in Bilston, West Midlands. Online sales through Poundland.co.uk will cease next month, along with the discontinuation of the Perks app.
Barry Williams expressed gratitude for the support received during the restructuring process, acknowledging the impact on employees affected by the store closures. The focus now shifts to revitalizing Poundland by enhancing product ranges, reducing prices, and delivering the straightforward value that customers desire.