The budget retailer had a pre-tax loss of more than £51m last year and is struggling to lure back customers amid stiff competition from rivals.
“It’s not actually that cheap any more. It’s kind of lost its appeal because everything is not a pound.” Samantha, a shopper outside Poundland’s Luton retail park outlet who is heading off to B&M to find some better deals, sums up the feelings of many of her fellow bargain hunters and a central problem facing the new owner of the budget retailer.
Read the full article on The Guardian website
NAM Implications:
- “everything is not a pound”
- Unrealistic expectations, given that inflation means a £1 product needs to be £3.50 to cover current costs.
- But consumers are not meant to be experts on inflation (they merely take the pain, or walk)
- In reality, the £1 model is way past sell-by…
