Poundland announced its recent price cuts are “just the start” of what could be more cost-saving initiatives as the rate of inflation slows.

The value retailer announced earlier today (July 25) that many of its big-selling products are returning to a £1 price point as overall inflation fell in June.

Poundland spokesperson told Retail Week that the cost of more than 100 items has been slashed to £1 and that with “inflation ameliorating”, it has given Poundland “some room” to reduce prices.

They said: “I think there’ll be more of this in the future so this is just the start rather than the end.”

Despite inflation moderating, the cost-of-living crisis is ongoing and continues to affect customers who have to prioritise essentials.

Poundland has been trying to navigate the challenging economic environment and “keep value” at the heart of the business while setting an example for the rest of the industry. 

The spokesperson said: “Bigger retailers and perhaps the whole discount sector watch what’s happening from a pricing perspective. We might be a small player, but we can still play a very positive role in terms of pricing across the whole market.”

They said customers have noticed the commitment shown by the discounter and that it has been reflected in recent financial results.

Poundland’s like-for-like revenue increased by 9% in its third quarter and is currently trading well in its fourth quarter.

Value proposition

Poundland has moved away from its USP of everything costing £1 in recent years, but it emphasises that it still offers great products at value prices.

“What Poundland sells today is much broader in terms of range. It’s not going to sell much clothing for a pound or even much chilled or frozen food for that price,” the spokesperson said.

“What Poundland has been doing over the course of the last four or five years is to broaden things that people buy week in week out and it’s all got to be amazing value because that’s our promise. 

“We’re doing this because we know that our success is based on this promise that we make to our customers. We’re very proud of being a discounter and this means we have to deliver on pricing strategy for the people.

“Now it’s time to focus on bringing prices down wherever we can.”