Poundland makes major change to prices as 68 stores closing
After narrowly avoiding administration, the retail chain is now going back to basics by making its pricing structure simpler for consumers
Poundland is introducing major changes to some of its prices across all of its UK stores as it looks for a turnaround in its fortunes. The news will be welcomed by consumers as they continue to weather the storm of a cost-of-living crisis and will see the budget retailer price around 60% of its grocery items at just £1.
Prices across other items will return to simpler amounts of £2 and £3 as Poundland, who avoided administration, continues to look at ways to improve its fortunes on the UK high street. The announcement came off the back of a five-month pilot scheme at 17 stores located in the West Midlands. A spokesman for the company said the move will see it go “back to its roots” and mark “the end of additional price complexity”.
The simpler pricing system is set to be rolled out across general merchandise and clothing lines in the coming months. The group added that the changes have reduced shoplifting by over a quarter in trial stores.
Higher-priced items such as £5 dishwasher tablets had been attractive for thieves who have a tendency to target certain products. The recent announcement comes after the company swerved collapse following High Court approval earlier this week, as reported previously in the Express.
The High Court decision occurred just days before the firm was reportedly due to run out of money. The recovery plans will see up to £60m of new funding injected with an aim to keep the retailer afloat. As part of the consolidation, the company will press ahead with a store closure programme that will see 68 shops shut, which in turn will impact around 1,000 workers.
Barry Williams, Poundland managing director, said: “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.
“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.”
Poundland is also set to roll out a re-focused grocery range alongside the pricing overhaul amid consolidation efforts.
The retail giant has already extended the scheme to five stores outside of the West Midlands, in Manchester, Liverpool, Hanley, Brixton and Wandsworth.
The company spokesman said that when complete, around 60% of grocery items will be at £1, 20% will be at £2, and 20% at £3.
The firm, founded in Burton upon Trent, Staffordshire, in 1990, was sold by Pepco Group to Peach Bidco, a subsidiary of private equity firm Gordon Brothers, for £1 in June. At the time of the sale, it had around 14,700 staff members and operated about 800 stores.
August 31:
- Blackburn, Lancashire
- Cookstown, Northern Ireland
- Erdington, West Midlands
- Kimberley Nottingham, Nottinghamshire
- Horsham, West Sussex
- Hull Kingston retail park, East Yorkshire
- Kettering, Northamptonshire
- Omagh, Northern Ireland
- Shepherd’s Bush, Greater London
- Southport, Merseyside
- Taunton, Somerset
September 14:
- Irvine, Scotland
Stores already closed:
- Ammanford, Wales
- Birmingham Fort Shopping Park, West Midlands
- Cardiff, Wales
- Cramlington, Northumberland
- Leicester, Leicestershire
- Long Eaton, Nottinghamshire
- Port Glasgow, Scotland
- Seaham, County Durham
- Shrewsbury, Shropshire
- Tunbridge Wells, Kent
- Bedford, Bedfordshire
- Bidston Moss, Merseyside
- Broxburn, Scotland
- Craigavon, Northern Ireland
- Dartmouth, Devon
- East Dulwich, Greater London
- Falmouth, Cornwall
- Hull St Andrew retail park, East Yorkshire
- Newtownabbey, Northern Ireland
- Perth, Scotland
- Poole, Dorset
- Sunderland Pallion retail park, Tyne and Wear
- Stafford, Staffordshire
- Thornaby, North Yorkshire
- Worcester, Worcestershire
- Brigg, North Lincolnshire
- Canterbury, Kent
- Coventry Hertford Street, West Midlands
- Newcastle Killingworth Centre, Tyne and Wear
- Kings Heath, West Midlands
- Peterborough Orton Gate shopping centre, Cambridgeshire
- Peterlee, County Durham
- Rainham, Kent
- Salford, Greater Manchester
- Sheldon, West Midlands
- Wells, Somerset
- Whitechapel, Greater London
- Swiss Cottage, Greater London
- Southampton West Quay, Hampshire
- Chiswick, Greater London
Poundland has reportedly confirmed it will shut down 16 more stores, but has not yet identified their locations.
