Poundland is set to implement a new pricing strategy across its UK stores, simplifying prices to £1, £2, or £3. The discount retailer is returning to its core values after being acquired by investment firm Gordon Brothers for £1. The phased rollout of the new pricing model, which was successfully trialed in 17 West Midlands stores, will be completed by September.
During the trial period, prices were slashed, and the product range was refocused on popular items. The share of £1 grocery products surged to over 60%, with the final setup aiming for 60% at £1, 20% at £2, and 20% at £3. Household, grocery, and confectionery items priced at £1 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 structure will be introduced gradually to various categories, starting with snacks, ambient drinks, pet food, and household products this week. The transition to the new pricing will extend to other grocery segments, confectionery, health and beauty products, as well as chocolate, biscuits, and cakes by the end of September.
Poundland reported a significant decrease in shoplifting incidents, attributing the reduction to the removal of more expensive £5 items. The managing director, Barry Williams, expressed confidence in the simplified pricing approach, reflecting customers’ preference for value-focused offerings.
Following the approval of a restructuring plan by the High Court, Poundland avoided administration. As part of the restructuring, 68 stores will be closed, impacting approximately 1,000 employees. Additionally, the frozen and digital distribution site in Darton, South Yorkshire, and a warehouse in Bilston, West Midlands, will be shut down.
In line with the restructuring, Poundland will cease online sales through its Poundland.co.uk website next month and discontinue its Perks app. Despite the changes, Poundland remains committed to supporting affected employees while focusing on revitalizing the brand and enhancing customer experience.