Poundland is returning to its £1 price point roots in a bid to get its performance “back on track” after like for like sales for the year fell by 3.6%.
The discount chain has filed a trademark application for “Home of the £1” and is using the slogan in a new campaign, alerting followers on social media to the “over 1,500 products in store now for a £1 or less”, including Fairy Liquid, Colgate toothpaste and Christmas wrapping paper.
The slogan has also begun appearing in new signage in stores, highlighting everyday essential grocery lines such as milk, eggs and bread at £1.
It is part of Poundland’s plan to focus on its strengths following disappointing full-year results, with its owner Pepco Group blaming the UK discount chain’s “weak performance” for a net €662m loss.
The trading update said the net group loss was related to a non-cash €775m impairment charge for Poundland in the year to 30 September 2024.
Pepco Group CEO Stephan Borchert said it was “taking swift action to get Poundland performance back on track, focusing on a return to Poundland’s strengths”.
A Pepco Group spokesperson added: “Getting the performance of Poundland back on track is a key priority, including a focus on returning to its long-time strengths.
“In recent weeks, we have made strong moves for customers by increasing the number of items at £1 with the introduction of essentials, such as milk, sugar, eggs and bread all at this price.”
Single price point pound shops have steadily disappeared from high streets over recent years as inflation has made the concept less viable. Poundworld had introduced multiple price points by the time of its collapse in 2018.
Poundworld founder Chris Edwards launched One Below – a chain selling everything for £1 or less – in 2019, but by 2022 the name had changed to One Beyond and the concept turned on its head, with most of the range costing £1 or more.
Poundland has been adding multiple points since 2017 and in 2022 even launched a hanging egg chair for £150.
Poundland’s latest accounts at Companies House, for the year to 1 October 2023, credit “an increase in our multi-price offerings” as “key” to “sustained growth”.
However, Poundland has leant more into its traditional £1 price point in marketing since the cost of living crisis, and more recently its sales have suffered following a switch to group-level sourcing of clothing and general merchandise earlier this year.
The new stock failed to replicate the previous breadth of Poundland’s men’s and women’s clothing ranges and coverage across sizes, while gaps were left in important seasonal and DIY ranges, according to the group trading update.
Pepco Group’s spokesperson said: “We will also look to broaden our seasonal offer for which Poundland is well-known and re-introduce greater depth in important categories such as DIY.”
Positive growth in fmcg, which accounts for 67% of Poundland revenue, was offset by a negative performance in clothing and general merchandise, the trading update said.
It left Poundland revenue in the year to 30 September 2024 flat, despite its estate growing by a net 13 stores to 836.
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