Poundland confirms major price changes amid store closures
Discount retailer Poundland is set to revert to its core pricing model of ยฃ1, ยฃ2, and ยฃ3 across all UK grocery items, a strategic move aimed at revitalising its business following a recent brush with administration.
This shift, which will see approximately 60 per cent of its grocery range priced at ยฃ1, follows a successful five-month trial across 17 stores in the West Midlands.
The company stated the change marks a return “back to its roots” and signifies “the end of additional price complexity”, with similar simplified pricing planned for general merchandise and clothing in the coming months.
An unexpected benefit of the trial was a significant reduction in shoplifting, with incidents falling by over a quarter.
This was attributed to the removal of higher-priced items, such as ยฃ5 dishwasher tablets, which were attractive targets for thieves.
The pricing overhaul forms a crucial part of Poundland’s wider recovery efforts, which recently saw it secure High Court approval for a major restructuring plan, narrowly averting collapse just days before it was projected to run out of funds.
The scheme will inject up to ยฃ60 million in new capital, though it also entails the closure of 68 stores, impacting around 1,000 employees.
Barry Williams, Poundland managing director, said: โCustomers have told us loud and clear during these pilots that they will back a simpler, more focused Poundland that keeps its promise of amazing value.
โWeโve heard them, and the clear success of our pilot is why Iโm confident that a Poundland thatโs focused on the simple value our customers expect, has a bright future.โ
Poundland will also roll out a re-focused grocery range alongside the pricing overhaul.
It has already been extended to five stores outside of the West Midlands, in Manchester, Liverpool, Hanley, Brixton and Wandsworth.
Poundland said that when complete, around 60 per cent of grocery items will be at ยฃ1, 20% will be at ยฃ2, and 20 per cent at ยฃ3.
The firm, founded in Burton upon Trent, Staffordshire, in 1990, was sold by Pepco Group to Peach Bidco, a subsidiary of private equity firm Gordon Brothers, for ยฃ1 in June.
At the time, it had around 14,700 staff members and operated about 800 stores.
