Poundland has unveiled a new pricing structure of £1, £2, and £3 for its UK stores. The discount retailer is reverting “back to its origins” after being acquired for £1 by investment firm Gordon Brothers. The phased rollout of the new pricing system will cover all Poundland stores in the UK between now and September, following a successful trial at 17 stores in the West Midlands.
During the trial phase, prices were notably reduced, and product ranges were refocused on popular customer choices. The share of grocery items priced at £1 rose to over 60%. Upon full implementation, approximately 60% of grocery items will be priced at £1, with 20% at £2 and 20% at £3.
Some 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 new pricing model will first apply to snacks, ambient drinks, pet food, and household items this week, with other grocery items, confectionery, health and beauty products, as well as chocolate, biscuits, and cakes transitioning by the end of September.
Poundland reports a reduction of over 25% in shoplifting incidents in the trial stores after eliminating pricier £5 items. In a specific store in Walsall, a habitual shoplifter complained about the removal of the higher-priced item they used to steal regularly.
Barry Williams, the managing director of Poundland, expressed confidence in the simplified value proposition based on customer feedback from the pilot initiatives. The retailer’s restructuring plan was recently approved by a judge at the High Court, preventing the company from entering administration.
As part of the restructuring, Poundland intends to close 68 stores affecting approximately 1,000 employees. Additionally, the frozen and digital distribution site in Darton, South Yorkshire, and another warehouse in Springvale, West Midlands, will be shut down. The company will discontinue online sales through its Poundland.co.uk website and discontinue its Perks app.
Barry Williams expressed gratitude towards the Court and creditors for their involvement in the process. He acknowledged the impact on employees due to the store closures and reaffirmed Poundland’s commitment to supporting them. The focus now shifts to revitalizing the brand by enhancing product ranges, reducing prices, and delivering the straightforward value proposition that customers anticipate.