We visited Poundland's Luton store to see how the discounter is attracting more shoppers and driving sales with its new Pep&Co shop-in-shop.
Poundland Luton has an impressively large clothing offer, with Pep&Co taking up approximately one third of the sales space. A total of 90 bays, encapsulating the entire Pep&Co collection, is merchandised at the back of the store. Despite its location, the clothing offer cannot be missed with floor stickers in-store guiding shoppers and more noticeably a dual fascia outside of the store.
Bringing value clothing to over 300 stores
Pep&Co now trades from 300 Poundland stores; an impressive rate of roll-out between both retail teams. The popularity of the brand is driven by its fashion-led designs, family-focused range and value prices. The majority of the 1,200-SKU range is under £10, will the best-selling black jegging line at only £7. While 50% of the range is dedicated to womenswear, the proposition is also focused on meeting needs for men and kids, with each accounting for 15% and 35% of the range, respectively.
Shouting about price
Value pricing is a top priority as is evident around the store, however Poundland and Pep&Co's light and humoured approach on new in-store marketing and packaging shows how the retailer does not take itself too seriously. It wants to give the shopper a fun in-store experience, something which suppliers should keep in mind.
How does the offer fit with Poundland?
Pep&Co is a strong fit with Poundland's simple value model. With Poundland now offering prices outside of £1 (50p, £2 and £5), it is fitting that the retailer has added another dimension to its multi-price strategy with clothing; giving shoppers more reasons to visit stores where they can complete yet another mission or pick up an item on impulse. However, the variety discounter continues to make it clear in-store that £1 items are still at the heart of the business, and Pep&Co mirrors this with a small collection of value £1 lines. Overall, the two retailers sit harmoniously side-by-side, and given that Poundland is only taking on new sites that fit both a Poundland and credible Pep&Co offer, it seems that the two will continue to grow together.
Look out for the full Poundland Luton store visit report on Retail Analysis, coming soon...