Retailer Spotlight - Poundland
Retailer Spotlight - Poundland
In the first of our series, we're taking a closer look at our retailers: Where they come from, what they do differently and how we contribute to their offering. In this piece we look at Poundland, the new staple of the High Street.
Founded in 1990 in Burton-on-Trent, Poundland has gone on to rule the world… or at least our High Streets.
The concept of the single-price retailer has been around for a long time, beginning in America in the 1870s. Even BHS was originally built on the model, with its highest price originally being set at one shilling. It was on the American “Five and Dime” or “Dollar Stores” that Poundland was originally based.
Today Poundland has since become the largest single-price retailer in Europe with over 800 stores nationwide, as well as the Dealz brand in Ireland. In recent years it’s begun to look further afield, opening more Dealz stores in Spain too.
Their explosive rise during the recession meant that Poundland came to be associated with other discount retailers who had performed well through the period however, Jim McCarthy, the former CEO of Poundland said: "There's a common misconception that Poundland is a better business in a recession, but that's not correct - we're actually better when times are good but we are very robust and people do turn to us to save money."
However the recession did mean one very big change for Poundland: introducing themselves to the middle classes. Finding new customers that would have previously eschewed discounters now eager to brag about how much money they saved! Today 50% of all shoppers say they head to pound shops every week and 53% of Poundland customers are in the AB demographic. It’s even spawned some high-end copycats, most recently there is a plan for a secret Mayfair based £1000 Store!
Poundland has survived and thrived by remaining at the forefront of innovative retail. Its current EPOS systems are state of the art, allowing them to automatically track stock as soon as it’s sold. This simple change means they are able to keep up to date with what’s selling best as well as having better control of their supply chain which is essential to a retailer operating on small margins.
Never one to rest on their laurels though, Poundland has continued to diversify its offering, beginning to experiment with a multi-price variation called Poundland & More. This new beginning, utilising the larger store formats of some previous takeovers still maintains great value for money with its customers. The majority of products will retail at less than £10. Trolleys outside the store and wide aisles will allow shoppers to fulfil a larger shop more comfortably than in a standard Poundland store, where they usually have no car park and are basket only.
Throughout the past 16 years Poundland has kept its core mission as “a range of more than 3,000 items – representing AMAZING VALUE for money.” Part of this for has been for Access Point to offer Till Receipt Advertising. With the takeover of 99p Stores by Poundland last year, Access Point were finally able to offer Poundland customers an extra way to add value to their shopping experience. This offers an excellent opportunity for till receipt advertisers to provide an attractive and memorable offer or awareness message and tap into a consumer market that is value driven and eager for a deal.
Till Receipt Advertising can help drive sales for value driven customers especially in central urban locations
Everyone is now looking to see what Poundland’s next move will be from The City to The Big Four Grocery Stores. However in the meantime customers will continue to enjoy the great savings Poundland offers and their combination of everyday staples and impulse buys.
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