Poundland To Lean Into £1 Price Point To Support Customers

Today (29 June) Poundland confirmed it was resetting its 850-plus stores to ensure it would best meet the needs of customers – new and old – as the country begins seeing rates of inflation not experienced since 2007-8.

With new figures released last week showing inflation was running at its highest rate for 40 years - 9.1 per cent - Poundland said it would be leaning more heavily into its iconic £1 price point to help support customers looking to save money.

It’s also focusing on the value of single items, so customers are freed from the tyranny of being forced to buy in bulk to save money.

While it remains a ‘Simple Price’ retailer, expanding ranges to cover more of the full weekly shop customers want to make, it has been revamping ranges and displays to ensure around 60 per cent of what it sells is £1 or less.

And with frozen food a vital tool for customers to save money and manage waste, it also announced it would be accelerating the rollout of chilled and frozen food departments as almost 100 stores are given ‘Project Diamond’ makeovers.

When complete in September, almost half the Poundland chain – over 350 stores – will offer customers chilled and frozen food, alongside whole new categories such as PEP&CO clothing and homewares.

The rollout of Project Diamond will move deeper into the north, west and south than ever before.

With revamps set for St Austell in Cornwall, Irvine and Airdrie in Scotland and Cwmbran in Wales, Poundland will open chilled and frozen departments in more locations across the UK from July to September.

As inflation bites Poundland is seeing changes in the way customers are shopping – using Poundland for more of their weekly shop and taking advantage of the fact its stores are close-to-home, cutting down on fuel costs.

Poundland has seen strong growth in frozen food sales this year as customers realise the power of frozen food in cutting back on food waste and managing tight budgets that need to stretch to pay increasing energy and fuel costs. 

Barry Williams, Poundland managing director, said: “It’s clear customers are shopping more intentionally and that’s why we’re leaning into our £1 price point.

"While we don’t have a magic trick up our sleeves to counter inflation, we know that those who work hardest to keep costs low will end up winning customers’ trust.

“The promise we make to customers that we can deliver amazing value, has never been more important. 

“We’re determined to not let them down.

“That’s why we’re offering more of what they want, at a price that recognises they need their money to work as hard as it can.”

Poundland’s chilled and frozen food programme has been accelerated following the acquisition of Fultons Foods in 2020 and the expansion of Fultons’ distribution centre in Barnsley and Poundland’s distribution centre in Harlow, Essex.

Poundland stores getting chilled and frozen food ranges in July and August:

List excludes new stores still to be announced; stores and dates may be subject to change 

Source : Poundland

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