In the wake of last week’s inflation data showing price rises were moderating, falling to 7.9 per cent in May from 8.7 per cent, Poundland today (25 July) made a significant move to reduce the price of big brand family favourite products, many back to a £1 price point.
The move, dubbed ‘Operation Sell for Less’ will hit its 800-plus UK stores this morning as Poundland passes on the benefit of lower costs to customers.
The move will see big selling lines come down in price, with many items now at over a third less than RRPs.
Examples of items falling from £1.25 to £1.00 include Dettol surface wipes, Harpic cleaning gels, Johnsons cotton buds, Nivea shower creams and Lynx deodorant.
Some products will be reduced even more aggressively. Six-pack Seabrooks, Cheetos and Smiths crisps will come down from £1.50 to £1.00 and one litre bottles of Coca-Cola will be reduced from £1.65 to £1.00.
Poundland has also managed to reduce the price of many popular big sellers below £1. Pot Noodles are being reduced from £1.00 to 85p, Disney baby wipes from £1 to 75p and various Bodyform lines from £1 to 85p.
The move comes as Poundland releases research that despite falling inflation, customers are still highly concerned about making ends meet.
Research[1] carried out last week shows that while energy bills have started to fall, concern about the cost-of-living is still high.
Compared to June 2023, a sample of all Brits shows there’s 26 per cent more concern about tax and national insurance rises with concern from two-thirds of the public (67 per cent).
However Poundland shoppers are even more concerned with almost three quarters (74 per cent) saying they are worried about those rises.
With mortgage hikes on the horizon for many, the same survey shows that Poundland shoppers are more cautious about their financial outlook over the next 12 months. Over half (57pc) reveal they have to plan their budgets carefully or can only just afford what they need, slightly more than the wider population (57pc).
Tim Bettley, Poundland’s trading director said: “We’ve worked hard since the beginning of the cost-of-living crisis to maintain our promise of amazing value to customers – and our consistent, steady growth shows they’ve noticed.
“But we also know the pressures are still real.
“Energy prices may be falling, but mortgage costs are on the rise so our job, now inflation is beginning to ease, is to do everything we can to pass on lower prices as soon as we can.
“We know that discounters like us passing on cost savings quickly, can help lower prices right across the market and drive inflation down faster.
“We’re committed to that mission of delivering amazing value – and it we know how much that matters to our customers.”
Poundland recently announced it planned to accelerate its grocery rollout which includes chilled’, frozen’, fresh fruit and veg as well as beers, wines and spirits to more stores.
The move further strengthens the Poundland’s range revolution that’s taken place over the last three years, as it adds whole new categories such as clothing, homewares, and chilled and frozen food to offer customers an alternative to supermarkets.
It is also continuing to revamp stores so they can accommodate wider ranges as Poundland offers more of the items customers buy week-in, week-out.
Over the coming weeks Poundland will open or relocate nine new stores in Braehead (29 July), Frome (5 August), Torquay (2 September), Ipswich (2 September), Selby (2 September), Pontefract (9 September), Cardiff (9 September), Stafford (16 September) and Ryde (23 September).
Up to six other stores are also planned to open before the end of September, subject to legal agreements.
About Poundland
Since opening its first store in Burton-upon-Trent in 1990, Poundland, has built a network of over 850 stores in the UK and the Republic of Ireland, offering top brands and great quality own brand products that provide customers with amazing value every day.
It now has around 18,000 colleagues who serve up to seven million customers every week from Aberdeen to Abingdon, Londonderry to Llandudno and Peterborough to Poole. Poundland offers thousands of quality products in store with over 1,000 well-known brands in 17 shopping categories including food and drink, health and beauty, household, gardening, DIY, pet, stationery, books, DVDs and toys.
Within the UK Poundland has also rolled out Pep clothing to around 400 of its larger stores, offering women’s, men’s and kids’ fashion and bringing new style to Poundland with simple low pricing on family fashion that’s hard to find on local high streets.
From August 2020, Pep also began powering Poundland’s new homewares ranges, which have won widespread acclaim for their style and value. Poundland now also offers chilled and frozen food in over 350 stores, which is set to rise to over 500, following its acquisition of Fultons Foods and an investment of £25m.
Poundland is part of Pepco Group which has around 4,000 stores in 19 territories including the UK, the Republic of Ireland, Spain and across the CEE region, employing 43,000 people.
[1] Research conducted by Two Ears One Mouth on behalf of Poundland, 18 July 2023.
