Following news last year that Poundland would trial a multi-price fascia in the UK, the discounter has unveiled the new concept as Poundland & more, with the first store now open in Slough, Berkshire.
Six trial stores to open in April 2016
The Slough store, and the remaining five that will open this month, were all larger 99p Stores units. The locations for the upcoming trial stores are Gillingham, Ilkeston, Kings Heath, Norwich and Dudley. Notably larger than Poundland's main estate stores, the sites are allowing the discounter to evolve beyond its core £1 price point, but with the majority of products at less than £10. Trolleys outside the store and wide aisles allow shoppers to fulfil a larger shop more comfortably than in a standard Poundland store, where often there is no car park so shoppers may be limited to a smaller basket.
Adding new categories and services
While Poundland & more offers shoppers the entire Poundland range, the store size and flexible pricing model has allowed the discounter to add new categories and services, adding significant wider scope. These include, beers, wines and spirits, frozen food, tobacco, QuickPay and National Lottery, the majority of which are at round pound prices reflecting the core value proposition.
What do we think?
A multi-price fascia is a good move for Poundland, allowing the discounter to extend beyond its single price-point and to be more competitive in the variety discount segment with other multi-price players such as B&M and Home Bargains. Giving shoppers access to more categories and products gives them fewer reasons to shop elsewhere, as long as value remains at the centre of the offer; a key priority for Poundland.
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|Priya Chandarana is a Retail Analyst at IGD, specialising in research on the growing UK discount channel. She brings food and wine retail and PR experience to IGD. To learn more about how IGD's research can benefit your business further, please get in touch.|