Widening its remit, the retailer is testing the market for the new price points with a 24-store pilot.
Poundland has unveiled plans to evolve from being a ‘single price’ to a ‘simple price’ outlet, introducing a range of prices stretching from 50p up to £5. Customer reaction is being tested in a group of 24 pilot stores located throughout the Midlands region
Barry Williams, Poundland’s managing director, said sticking to the £1 price point had prevented the sale of products that customers had to visit rival stores to buy: “This is a way to broaden our proposition in a measured way that stays true to why people love Poundland.” The new price points include 50p and 75p as well as £1.50, £3 and £4. The company started selling selected products at £2 and £5 in 2017, although this is the first time it has offered “dedicated ranges at lower price points”.
The higher price points mean that Poundland could stock bigger packs and larger items in its 854 stores in the UK and Ireland. As company owner Steinhoff faces investigations relating to an accounting scandal, the Poundland chain has been forced to halt its store roll-out programme, instead focusing upon its core offer. The company hopes that a more flexible pricing strategy could make Poundland more attractive to shoppers and increase profit margins.