Poundland is set to implement a new pricing strategy across its UK stores, simplifying prices to £1, £2, and £3. The discount retailer, now under the ownership of investment firm Gordon Brothers, is returning to its core pricing structure. This transition follows a successful trial at 17 stores in the West Midlands and will be gradually introduced to all Poundland stores in the UK by September.
During the trial phase, prices were notably reduced, and the product range was refocused on popular customer choices. The majority of grocery items will be priced at £1, increasing to over 60%. Once fully implemented, approximately 60% of grocery items will be priced at £1, with 20% at £2 and 20% at £3.
The new pricing strategy will be initially applied to snack, ambient drinks, pet food, and household categories, with the transition to other grocery sections, confectionery, health and beauty products, and chocolate, biscuits, and cakes expected to be completed by the end of September.
Poundland reported a significant decrease in shoplifting incidents of over 25% in the trial stores by eliminating higher-priced £5 items. Customers have expressed support for the simplified and focused value proposition offered by Poundland during the trials.
Following the approval of a restructuring plan by a judge at the High Court, Poundland avoided administration. As part of the restructuring, the company plans to close 68 stores, impacting around 1,000 employees. Additionally, Poundland will shut down its frozen and digital distribution site in Darton, South Yorkshire, and another warehouse in Springvale, Bilston, West Midlands.
Further changes include the cessation of online sales through the Poundland.co.uk website and the discontinuation of the Perks app next month. Managing director Barry Williams expressed gratitude to the Court and creditors for their involvement in the process, acknowledging the impact on employees while emphasizing the company’s commitment to supporting them.
Williams highlighted the focus on revitalizing Poundland by enhancing product ranges, reducing prices, and delivering the straightforward and customer-centric Poundland experience desired by their loyal customer base.