Poundland ramps up £1 items in battle for shoppers
Poundland is to increase the number of products it sells for a pound as retailers battle for customers.
Around half of its products are priced at a pound, but the business says by the end of this week 60% of what it sells will be a pound or less.
The discount chain says it is seeing a rise in customer numbers as people seek savings as the cost of living rises.
Recent surveys have suggested customers are spending less on their food shop because of rising prices.
Barry Williams, Managing Director of Poundland said there is now a “definite dynamic” of shoppers migrating away from major supermarkets to the discounters.
“I think you’re seeing a shift, a flight to value, if you like, from the traditional grocers, the major multiples, into the discount channel where we operate. Most discounters are performing better at the moment,” he said.
He says customer numbers are up 5-10% compared with the same period last year.
Mr Williams says people are shopping around and controlling their spending as much as they can.
“What we’re definitely seeing is customers are prioritising essential areas of spend. It’s more around fast moving consumer goods, it’s more around food. .. perhaps a few less items in each basket.”
Sales of frozen food are up, a category which he says tends to perform well at difficult times as it helps shoppers manage waste.
Research firm NielsenIQ in its latest shopping survey found that one in four households were monitoring the overall cost of their shopping basket, including seeking out their favourite brands at value retailers like Poundland and Home Bargains.
Mr Williams said with inflation soaring to its highest level in years, Poundland’s one pound price point is being expanded to make it easier for customers to manage their budgets. Two thirds of the products will be branded goods.
“Customers are being really mindful about how much they spend, this is a really easy way for them to control that spend as well,” he said.