After a successful trial, Poundland has announced it will be rolling out its new pricing structure across all stores.
From single price to simple price
Poundland conducted qualitative and quantitative research alongside working with Kellogg’s, Heinz, P&G and Princes before launching a trial in 24 stores across the Midlands, to determine how best to evolve its pricing structure. The retailer's aim is to lessen its dependence on the £1 price point and move towards being a simple price retailer.
The trial was a success and has resulted in five new price points being added to Poundland's range; 50p, 75p, £1.50, £3 and £4. These sit alongside the standard £1 price point and the £2 and £5 price points that were introduced in 2017. Around three-quarters of products will remain at £1.
The multi-price point proposition will be in the grocery, health and beauty and household categories. To maintain consistency throughout the store and ease confusion, each bay will be limited to three price points.
|Source: IGD Research - Poundland Walsall
Why this is important?
Poundland's continued evolution is in line with leading variety discounters Home Bargains and B&M enhancing their grocery offers.
Whilst these changes may not make it possible for shoppers to complete a total shop, it helps grow basket size with products shoppers buy most often. The retailer can now carry market-leading products such as John West tuna and Pantene, which would not previously fit into the Poundland £1, £2, £5 price point range.
Poundland's new pricing structure allows the retailer to flex its range and encourages shoppers to buy bigger baskets, without losing its value positioning.
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