Poundland has unveiled plans to start selling clothing – but they probably won’t come with the retailer’s famed £1 price tag.
Andy Bond, who heads up the bargain retailer as the boss of Pepkor Europe, has said he wanted to introduce the group’s Pep & Co clothing to every store – but it would not all be priced at £1.
Bond said full 2500 sq ft Pep & Co outlets will move into 10 Poundland stores from next February, and that there was room for them in at least 50 of Poundland’s 900 outlets.
Smaller stores will feature a few racks of clothing, focusing on kids and womenswear.
“The relationship between Pep & Co and Poundland will become increasingly significant. My ambition is that, over time, Pep & Co will become to Poundland like George is to Asda,” Bond said.
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He added that no decision has been made on what would happen to the pricing of Poundland’s other products, although the chain has occasionally discounted items to 90p or 80p or sold bigger items for £8 or more.
“We will always anchor Poundland around the trust of £1 pricing but the research from the business isn’t that people shop there because things are £1 but because they get amazing value,” Bond said.
“There are some areas where sticking to £1 doesn’t let you have a credible offer – like toys and clothing.”
It is thought that the fall in the value of the sterling against the dollar, the currency in which much of the non-food goods sold in Poundland are bought in from far east Asia, could add to the pressure for price changes.
Pepkor Europe is an arm of South African conglomerate Steinhoff International, which acquired Poundland for £610 million in September.