Poundland is trialling a new pricing strategy in 24 pilot stores across the Midlands, offering products priced between 50p and £5. The move marks a significant shift for the retailer, whose stores have long been associated with the 'everything's £1' promise.
Managing director Barry Williams said the change allows the chain to stock items customers previously had to buy elsewhere, such as Colgate toothpaste at 75p and Aussie Shampoo at £3. He dismissed concerns that the varied prices might confuse shoppers, comparing it to expectations set by store names like Currys and Greggs.
About 80% of the 5,000 products in store will remain at £1. The new price points include 50p, 75p, £1.50, £3, and £4, building on the introduction of £2 and £5 items in 2017. Williams described the shift as moving from a 'single price' to a 'simple price' retailer.
The higher price points enable Poundland to sell multipacks and larger sizes of popular brands, such as John West tuna at £3. The retailer, which has 854 stores in the UK and Ireland, was acquired by Steinhoff in 2017. Steinhoff has faced financial difficulties following a major accounting scandal, though Poundland has recently secured a £180m loan to operate independently.
Analyst Clive Black of Shore Capital said the flexible pricing could improve Poundland's appeal and profit margins, noting that the business appears stronger and more stable after a turbulent period.
