Poundland is hoping to snatch a bigger slice of the health and beauty market after sealing a deal to source directly from Procter & Gamble.
“We are direct with P&G now,” said Poundland CEO Jim McCarthy, speaking exclusively to The Grocer. “P&G had some great experiences with the dollar market in the USA and they are keen to extend their brand reach in the UK.”
McCarthy also revealed that P&G is working with Poundland to make its products hit the round-pound price point.
“We are looking very hard at what sizes can work in the pound stores,” confirmed Irwin Lee, VP and general manager for P&G UK and Ireland. “We are looking to tweak the size, just a little bit, to allow us to price in a way that hits their requirements and allows them to merchandise it at a pound. That activity has worked very well.”
P&G is also looking to develop more dynamic fixtures and PoS in Poundland stores.
The news comes as recent statistics from research and consulting specialist Him! revealed that the number of shoppers intending to buy health and beauty products in high street supermarkets had fallen by almost half since 2009, coinciding with the rapid expansion of the variety discounters.
“We have to provide amazing, and sometimes extreme, value” said McCarthy. “Offering branded products is important because consumers can see the value very quickly.”