As reported by Retail Week earlier this month, Poundland is to return to round pounds in its pricing after a successful five month trial in selected stores.
In a bid to “bring back price simplicity in grocery aisles” and revive its fortunes, the discounter has committed to rollout new £1, £2, £3 grocery pricing across all stores.
Poundland said that as part of the move, it would make a commitment that around 60% of grocery items on sale would be priced at £1.
The move, which forms part of the plan the get the business back on track, was trialled in 17 stores in the West Midlands before a roll out to all UK stores between now and September.
Poundland said in a statement that the stores on trial had their prices “significantly reduced”, and ranges re-focused on customer favourites “with customers giving the changes a big thumbs up.”
According to Poundland’s customer research conducted in the trial stores, shoppers believed the new structure offered better value for money (3% increase), wider ranges (up 6%) and better choice (up 9%).
“The change to snacking, ambient drinks, pet food and household categories will be complete this week with other grocery ranges, confectionery, health and beauty and chocolate, biscuits and cakes moving over to the new offer by the end of September,” the retailer said in a statement.
“When complete, around 60% of grocery items will be at £1, 20% will be at £2, and 20% at £3.”
The retailer also noted that the new structure had a significant impact on crime in the trial stores, with would-be thieves less attracted to £5 products like dishwasher tablets.
Poudland noted: “In one store – Park Street in Walsall – a regular shoplifter made a complaint that the higher priced item they regularly stole, had been delisted.”
The retailer said that the new pricing would be expanded from grocery to GM and clothing in the coming months.
Earlier this week, Poundland was given a green light to restructure, providing a lifeline as it embarks on a revival strategy including the new pricing structure.
The High Court this week approved the value retailer’s restructure, which includes store closures, rent reductions and job losses, just days before the retailer faced running out of money.
Poundland managing director Barry Williams said at the time of the result: “Today’s decision is vitally important for Poundland, allowing us to stabilise the business, securing the future of hundreds of stores and thousands of jobs.
“We’d like to thank the court, and the engagement of our creditors throughout this process.
“Despite the opportunity this ruling provides, I’m extremely mindful of its consequences for our colleagues – especially those leaving us as we streamline our store estate, distribution network and support teams. We acknowledge the direct impact our plans have had on them and reconfirm our commitment to do all we can to support them.
“Nevertheless, our wider attention must now turn to getting Poundland back to growth. In the coming weeks, we will focus on getting us back on track – revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver.”
No comments yet