Poundland brings back price simplicity in grocery aisles

• Discount chain plans to roll out new £1, £2, £3 grocery pricing across all stores after five-month trial in 17 West Midlands stores
• Stores in Manchester, Liverpool, Hanley, Brixton & Wandsworth now live with the new offer
• Move includes commitment that around 60 per cent of grocery items on sale will be £1

Poundland today confirmed it will roll out new grocery pricing to all its UK stores that takes the discount chain firmly back to its roots.

The move, part of plans to get the business back on track, will simplify grocery ranges at Poundland stores to three simple price points – £1, £2, £3 – marking the end of additional price complexity.

The new pricing, accompanied by a re-focused grocery range, will roll out to all Poundland’s UK stores in phases between now and September, after being quietly on pilot at 17 stores in the West Midlands over the last five months.

In the pilot stores prices were significantly reduced and ranges re-focused on customer favourites with customers giving the changes a big thumbs up.

Customer research conducted in the pilot stores showed shoppers believed they offered better value for money (up 3pc), wider ranges (up 6pc) and a better choice perception (up 9pc).

In the pilot stores, the proportion of grocery items at £1 has increased to over 60 per cent – a move that will now be replicated UK-wide.

The new look to Poundland’s grocery aisles has already been extended to key stores outside of the Midlands – Manchester (Arndale), Liverpool (Lord Street), Hanley, Brixton and Wandsworth.

Examples of £1 lines across household, grocery and confectionery include Pink Stuff Paste (850g), Cif Lemon Cream cleaner (500ml), Heinz Baked Beans (415g), John West Tuna (125g), Haribo Starmix (160g), Werther’s Original (135g).

The change to snacking, ambient drinks, pet food and household categories will be complete this week with other grocery ranges, confectionery, health and beauty and chocolate, biscuits and cakes moving over to the new offer by the end of September.

When complete, around 60pc of grocery items will be at £1, 20pc will be at £2, and 20pc at £3.

At seasonal moments when customers want extended ranges or bigger packs, items at other simple prices may be available for a limited time.

“Customers have told us loud and clear during these pilots that they will back a simpler, more focused Poundland that keeps its promise of amazing value,” said managing director Barry Williams.

“We’ve heard them, and the clear success of our pilot is why I’m confident that a Poundland that’s focused on the simple value our customers expect, has a bright future.”

The move to simplify ranges and focus on three core grocery price points has also had a significant impact on retail crime in the trial stores.

By ending the sale of items attractive to thieves such as £5 dishwasher tablets, shoplifting has significantly reduced by over 25 pc per cent in the trial stores, protecting stock and fostering a safer environment for customers and colleagues.

In the coming months Poundland will extend this new simplicity to its general merchandise and clothing ranges, offering fewer price points and more focused ranges that customers can more easily see the value offered.