Poundland: ecommerce trial and store transformation

Date : 17 July 2020

Lucy Ingram

Retail Analyst

Poundland has announced major transformation plans, according to Retail Gazette. This follows on from the evolution we saw last year where Poundland introduced a new pricing structure and grew its grocery range to include chilled and frozen. 

Trialling online delivery 

This week Poundland will be closing one of its stores in Cannock, to convert it to an online fulfilment centre. It will begin trialling online delivery in 2021. 

From single price to simple price

Poundland will be extending its new pricing structure to all categories. This is part of its move towards a simple price promise, rather than single price. Poundland first introduced the new pricing structure into three categories in 2019; grocery, household and health and beauty as a way to increase average transaction value and grow basket size. 

The retailer now has eight price points: 50p, 75p, £1, £1.50, £2, £3, £4 and £5.

Store segmentation

As part of the process of revamping its existing estate and opening new stores, Poundland will be splitting its offer into three categories:

  1. Destination stores offering the full range of products including food, homeware, health and beauty and clothing
  2. Core stores offering a wide range of products on high streets
  3. Convenience stores offering “grab and go” easy shopping

Other changes

  • Accelerate the rollout of its new chilled and frozen range to 60 stores
  • Launching a new general merchandise shop-in-shop later in the summer
  • Open six new Pep&Co clothing shops
  • Investing in back office technology and installing wifi in every store 

Looking for more insight?

Subscribers can find out more about the changes Poundland has made to it's proposition in our the evolution of Poundland report. 


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