Discount chain Poundland is rolling out new grocery pricing to all its UK stores, taking the retailer back to its roots.
The move, which comes under plans to get Poundland back on track, will simplify grocery ranges at stores to three price points – £1, £2, £3 – as it scraps additional price complexity.
The new pricing, which is accompanied by a re-focused grocery range, will launch to all of the company’s UK stores in phases between now and September, after being piloted at 17 West Midlands stores over the last five months.
In the pilot, store prices were significantly reduced while ranges re-focused on customer favourites.
Customer research carried out in the pilot stores showed shoppers believed they offered better value for money, wider ranges and a better choice perception rising 3%, 6% and 9% respectively.
In the pilot stores, the proportion of grocery items at £1 has risen to over 60%, which will now be replicated across the UK.
The new look to Poundland’s grocery aisles has already been extended to key stores outside of the Midlands, including Manchester (Arndale), Liverpool (Lord Street), Hanley, Brixton and Wandsworth.
Examples of its £1 lines across household, grocery and confectionery include Pink Stuff paste, Cif lemon cream cleaner, Heinz baked beans, John West tuna, Haribo Starmix and Werther’s Original.
The change to snacking, ambient drinks, pet food and household categories will be complete this week, with other grocery ranges (confectionery, health and beauty and chocolate, biscuits and cakes) moving to the new offer by the end of September.
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Once complete, around 60% of grocery items will be priced at £1, 20% at £2, and 20% at £3.
Poundland is also set to extend its simplicity to its general merchandise and clothing ranges over the coming months, offering fewer price points and more focused ranges.
Poundland managing director Barry Williams said: “Customers 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.
“We’ve heard them, and the clear success of our pilot is why I’m confident that a Poundland that’s focused on the simple value our customers expect, has a bright future.”
It comes after Poundland narrowly avoided falling into administration, after a restructuring plan was recently approved days before it was set to run out of money.
The business asked the High Court to approve a deal, claiming that it would have run out of money without it by 7 September.
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