POUNDLAND has made a huge change to its prices in a bid to attract customers amid a huge shake up.
The bargain chain has gone back to its roots and has increased the number of products it sells for £1.
Poundland has made a big change to its prices in a boost for shoppers[/caption]
As part of the shake-up, the discount chain has rolled out £1, £2 and £3 grocery pricing across all of its stores.
The new prices were rolled out in phases and are now available in all of Poundland‘s UK stores.
The number of grocery items sold for £1 has increased to 60%.
Meanwhile, 20% of all goods now cost £2 and another 20% cost £3.
The chain said the new prices are designed to show shoppers “just how simple and straightforward getting amazing value should be”.
The prices apply to all health and beauty, household and confectionery products.
The lower prices were applied to snacking, drinks, pet food and household items earlier this year.
But Poundland’s clothing will not be included in the offer.
Although The Sun has been told that a similar strategy will be rolled out to clothing next year.
The chain also plans to relaunch its Pep&Co brand.
Managing director Barry Williams said: “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.
“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″.
The news comes after the prices were trialled within 17 Poundland stores across the Midlands.
During this pilot, prices were reduced and the ranges were refocused on what customers gravitated towards.
RETAIL PAIN IN 2025
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs will cost the retail sector £2.3billion.
Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April.
A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024.
Three-quarters of companies cited the cost of employing people as their primary financial pressure.
The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”
When the plans were announced Barry Williams said: “Customers have told us loud and clear during these trials that they will back a simpler, more focused Poundland that keeps its promise of amazing value.”
“We’ve heard them, and the clear success of our pilot is why I’m confident that a Poundland that’s focused on the simple value our customers expect, can have a bright future.”
The news comes five years after Poundland axed its £1 price limit.
Back in 2019 Poundland started to sell items for £10, after it had rolled out items costing £2 to £5 in the previous years.
What else is happening at Poundland?
The chain has recently managed to avoid tumbling into administration by agreeing to a restructuring plan that includes shutting stores and axing jobs.
Poundland was bought by the Gordon Brothers in July as part of a deal that included a big restructure and £80million cash injection.
The chain originally planned to close up to 68 stores but after a u-turn 11 of these shops will remain open.
Meanwhile, it has agreed to rent cuts at up to 180 stores.
Poundland was operating 800 stores nationwide but it now hopes to significantly reduce this number to between 650 and 700.
Meanwhile, it no longer offers frozen food in stores.
Poundland will also close its Darton frozen food distribution centre later this year.
Meanwhile, the Bilston national distribution centre will also close in early 2026.
Elsewhere, Poundland has also stopped offering online shopping.
Plus last week the chain axed its loyalty scheme, Poundland Perks.
But customers who signed up to the rewards app have until January 15, 2026 to use their vouchers.
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