The shop famed for its simple £1 price tag is trialing a range of items costing as much as £30!
Poundland has shocked shoppers by introducing a range of new items that cost well above its normal bargain £1 price tag.
The popular high street and online shop, famed for its simple single-price strategy, is now selling certain goods from £2 up to as much as £30 in stores and online.
Looks like it's finally official from Poundland #Brexit pic.twitter.com/dD2DdLTK8z
— Bryan Roberts (@BryanRoberts72) October 20, 2016
What’s on offer
Poundland has a range of items that are on special promotion and attract the higher price tags.
At the moment these can be found in categories like Toys, Garden, Home & Kitchen, Fragrance & Gifts, Fitness, Sound & Accessories as well as Disney/Marvel Blu-ray & DVDs.
For example, you can get a pack of Ariel regular washing powder (4.23kg 65 washes ) for £10. There’s also David Beckham classic gift set for £8 and a Disney Elsa singing doll for £12.
We’ve also seen a Portable record player turntable for £30 online.
@BryanRoberts72 @hughesy40 This stuff? pic.twitter.com/LNY06lk1Ta
— Steve Dresser (@dresserman) October 20, 2016
Is Brexit to blame?
The vote to leave the EU earlier this year has caused economic uncertainty in the UK, demonstrated most recently in the value of the pound plummeting to a record low. This shift means the cost of importing goods is going to get more expensive, which is likely to be passed onto shoppers.
However, Poundland denies the change to its pricing strategy is to do with Brexit.
Rather it claims the new price points are the result of customer feedback for a wider range of products and sizes, which the firm is trialing in stores and online until Christmas.
A spokesperson for Poundland told loveMONEY: "Poundland has been trialing a new multi-price offering across a number of its existing stores and this will continue through to Christmas with clear round pound price points.”
"We have listened to feedback from our customers and wish to offer more value from the product range we sell in our stores by offering larger packs sizes and a wider selection of products.
"The stores will also run short term offers, across all categories including homewares, toys and seasonal ranges.
"Poundland is committed to its round pound proposition and all stores trialling multi price will continue to offer the full range at its famous £1 price point which customers all know and love!"
Is Poundland in trouble?
In June, Poundland posted an 84% fall in pre-tax profits to £5.9 million in the year to March, which it put down to costly rebranding following its takeover of rival chain the 99p Store.
However, the amount spent by UK shoppers at value retailers like Poundland has jumped 17% compared to last year according to Nielsen retail performance data from August.
Of the increased spend the figures show that 31% is directly connected to a shift away from supermarkets and health and beauty retailers.
Mike Watkins, head of retailer and business insight at analysts Nielsen’s UK, said the growth in sales is partly down to the stores moving beyond the £1 pricing strategy.
He said: “This resonates well with shoppers because removing the £1 ‘straitjacket’ allows stores to offer good value across a much wider range of products, which makes for bigger baskets and more expensive trips.”
Is Poundland good value?
Last week a Daily Mail investigation found that Poundland is not always cheaper compared to supermarkets and other retailers.
It looked at the cost of a basket of 15 items and found that 13 or 87% could be found cheaper by shopping elsewhere.
For example, Astonish Yourself hand wash was £1 in Poundland but could be picked up for 89p in Iceland. While Cow & Gate baby food (200g, 7+ months) was £1 in Poundland or 79p in Superdrug.
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