How much does something cost at Poundland? The answer is no longer as simple as you’d think.
Everything in Poundland will no longer cost £1, the discount retailer announced on Tuesday, in a major shift for the brand.
Poundland said it plans to launch products for less than £1 and more than £1 as it moves away from its iconic single price structure.
The retailer already sells some items for 50p under occasional “manager’s specials” and introduced pricier items for £2 and £5 in 2017. However, Poundland is set to have even more discounted items and different price points higher than £1.
Barry Williams, managing director of Poundland, said: “We promise customers amazing value and we are committed to fulfilling that promise on the widest range of items.
“While three quarters of the products we offer will still be £1, it’s important we look to broaden our ranges elsewhere, whether above or below £1.
“Our customers are among the savviest in the country. We know that and it’s why we’re moving at the pace they dictate to become the simple price retailer they want us to be.”
The new prices will be trialled in stores in the Midlands before potentially rolling out nationwide if successful.
“The move to more flexible pricing should give Poundland potential scope to deliver a more varied and arguably stronger value proposition,” Clive Black, a retail analyst at stockbroker Shore Capital, said in a note to clients.
“If rolled out across its estate, then the competitive intensity within the discount channel ... could intensify a notch, something that the value-based supermarkets will also, no doubt, be keeping an eye on too.”
Black said the pricing shift coincided with Poundland rolling out clothing at its stores, most of which retail for more than £1.