A month after confirming that it is shifting away from being a single price retailer following the success of trials of its new multi-price strategy, Poundland has this week rolled out a range of products above and below £1 in the hope that it can grab a greater share of Christmas spending.
The discounter began piloting its “simple” multi-price proposition across health & beauty, household and grocery ranges in August at 24 of its stores in the Midlands. The changes included new permanent price points such 75p, £1.50, £3 and £4. This built on the introduction of £2 and £5 price points in 2017.
Examples of products now available across its 840-store estate include Matchmakers for 75p, Walkers 24 packs of crisps for £3, L’Oréal Elvive Fibrology shampoo for £2, Comfort Blue Skies fabric conditioner for £4, and Nivea Men Fresh Power 0% deodorant for £1.50.
Poundland has also ditched its ‘Everything’s £1’ slogan, and replaced it with ‘Simple Prices. Always Amazing Value’.
However, the company stressed that three quarters of its products will continue to sell at its longstanding £1 price point.
Barry Williams, Poundland’s Managing Director, said: “We’ve introduced simple pricing in time for Christmas so we can offer customers even more choice and even better value for money.
“Our team of talented buyers has moved heaven and earth to bring these ranges to store in time for Christmas and I’d like to thank them for all their hard work.”
Poundland has recently launched several new initiatives to broaden its appeal. This includes the trial launch of a fresh and frozen food range in five stores in Yorkshire and Derbyshire, as well as the roll-out of clothing ‘shop-in-shops’ at more than 300 stores.
NAM Implications:
- A multi-price strategy was always an inevitability for Poundland.
- (years of low inflation have allowed the retailer to build a firm £1 base)
- Having established that multi-pricing works within their business model…
- …suppliers now have increased access to the Poundland traffic.
- Time for suppliers to implement their ‘poundshop’ strategy, fast…
- i.e. little scope for me-toos on the shelf…
