Poundland announces major price rule change for all UK stores

Poundland has announced plans to roll out a new simpler £1, £2, £3 pricing structure to its UK stores.

The discount chain is going "back to its roots" after being sold for £1 to investment firm Gordon Brothers. The new pricing will roll out to all Poundland UK stores in phases between now and September, following a successful trial at 17 stores in the West Midlands.

In the pilot stores, prices were significantly reduced and ranges re-focused on customer favourites. The proportion of grocery items at £1 increased to over 60%. Once the rollout is complete, around 60% of grocery items will be at £1, 20% will be at £2, and 20% at £3.

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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 new pricing will be introduced to snacks, ambient drinks, pet food and household categories from this week, with other grocery ranges, confectionery, health and beauty and chocolate, biscuits and cakes moving over by the end of September.

Poundland claims removing more expensive £5 items has seen shoplifting has reduced by over 25% in the trial stores. In one store – Park Street in Walsall – a regular shoplifter made a complaint that the higher priced item they regularly stole had been delisted.

Poundland managing director Barry Williams 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.”

It comes after Poundland avoided entering administration after a restructuring plan was approved by a judge at the High Court this week. The company had said it would run out of money in days if the deal had not been given the green light.

The company has announced plans to shut 68 stores, which will affect around 1,000 staff. Poundland will also close its frozen and digital distribution site at Darton, South Yorkshire, and another warehouse at Springvale in Bilston, West Midlands.

The company also plans to stop online sales through its Poundland.co.uk website next month, and to axe its Perks app.

Poundland managing director Barry Williams said: “We’d like to thank the Court, and the engagement of our creditors, throughout this process.

“Despite the opportunity this ruling provides, I’m extremely mindful of its consequences for our colleagues - especially those leaving us as we streamline our store estate, distribution network and support teams.

“We acknowledge the direct impact our plans have had on them and re-confirm our commitment to do all we can to support them. Nevertheless, our wider attention must now turn to getting Poundland back to growth.

“In the coming weeks we will focus on getting us back on track – revamping ranges, lowering prices and creating the simpler and more focused Poundland we know our customers are eager for us to deliver.”