Poundland is moving into Europe – and all anyone can talk about is the name.
Many are troubled by the aesthetics of tagging that ‘z’ onto the end of Deal. But the new fascia invites questions about the entire business model.
Unlike Poundland, Dealz is not tied into a single, fixed price point. It can sell whatever it likes, for the price it likes – much like Poundworld’s alternative Discount UK, or the Family Bargains stores run by 99p Stores. Maybe it will be positioned as a Continental Wilkinson or TJ Morris.
But does it really want to? Or is it simply reluctant to commit to an unstable and unpredictable currency? Although it stopped short of calling the stores ‘Euroland’, perhaps it will try to charge a single Euro (currently worth 87p) per item – potentially squeezing suppliers a little more.
After all, part of its success is that everyone knows exactly what everything costs. A single price point makes it very easy to buy stuff. Stuff you didn’t even know you needed.
Officially, the pricing strategy has yet to be decided. But chief executive Jim McCarthy did drop a few hints. “Single price very helpful,” he told The Grocer today. “It offers shoppers a certainty of budgeting. A single price point is great.”
Either way, the recent performance of Poundland at home makes you confident McCarthy will come up with the winning formula.