Poundland is pushing its new back-to-basics £1-£2-£3 pricing strategy on billboard posters, including price comparisons with supermarkets.
The variety discounter has begun advertising on billboards and bus stops in the West Midlands, with its rollout of a simplified pricing structure in grocery due to complete across all stores this week.
One ad compares Poundland’s £2 price for Head & Shoulders shampoo to Asda’s £2.48, and tells passing drivers: “Don’t get rinsed”.
Others highlight some of the 60% of grocery lines which now cost “just a pound” at Poundland.
“The advertising will take Poundland back to its roots – simple pricing and amazing value at a time when other retailers are using increasingly complex tactics with multiple levels of discounts, timed offers, member pricing, loyalty and vouchers,” said a spokesperson.
“The adverts will show shoppers just how simple and straightforward getting amazing value should be.”
The pricing strategy is Poundland’s bid to win back shoppers under its new owner, investment firm Gordon Brothers.
It is the next phase of Poundland’s recovery after it secured court approval in August for a restructure plan involving the closure of about 60 stores and two warehouses, as well as the ending of online sales and the loyalty scheme, head office job cuts and the withdrawal of frozen food ranges.
A pre-close trading update from former owner Pepco Group yesterday revealed Poundland made a €314m loss for the pan-European retail group in the nine months before it sold Poundland for £1 in June.
Poundland said today that customer research showed perception of value for money was up three percentage points thanks to the new pricing structure. It said perception of choice was up by nine percentage points and breadth of range by six percentage points.
Poundland said its on-the-go chilled food range – which The Grocer revealed had vanished from shops at the start of September – would be back next month, under the same new £1-£2-£3 pricing structure.
It said its Christmas ranges would start to land in stores from today, also at £1, £2 or £3.
Read more: Poundland MD Barry Williams on returning to £1 basics to win back shoppers
Poundland’s Halloween and Christmas ranges have been bought by its re-established in-house general merchandise team, who The Grocer revealed had returned in August, having left under Pepco Group. The team includes Maria Epaminondas, who is leading the buying team alongside Antonia Quinn and Amy Beaumont. Poundland has also recruited new buyers Lesley Robinson and Daina Oosterwyk.
The new team will fully take over ranges from early 2026 when Poundland’s sourcing arrangement with Pepco Group ends, after which clothing designed and bought in-house under the Pep&Co brand will return to stores. The brand was first launched on high streets in 2015 before it was retired by Pepco.
“We’ve reached a major milestone in converting the whole of our grocery aisle to a simple £1, £2 and £3 offer, reducing prices and focusing on the favourite items customers want us to bring them,” said Poundland MD Barry Williams.
“But there’s much more to do. Our Christmas and Halloween ranges, bought by our new in-house team, give a glimpse of what we’ll be bringing in 2026 – a GM offer that makes us a go-to seasonal destination alongside a clothing offer designed and ranged for British and Irish shoppers.”
In 2026 Poundland is set to extend ‘simple pricing’ to the whole of its GM and clothing ranges, meaning fewer price points.
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