Poundland Targets Weekly Shop With Expanded Fresh Food Range

Namnews, 14th February 2022

Poundland has continued its push into the grocery market with the opening of a new large store format that hosts a wider range of fresh food aimed at attracting cash-strapped shoppers doing a weekly shop.

The 15,000 sq. ft. outlet is located at the Riverside Retail Park in Nottingham and is three times the size of an average Poundland store. It sells a wide range of fruit, vegetables and bread alongside its chilled and frozen food offering that has been rolling out across its estate over the last couple of years. The store is said to be more like a supermarket with trolleys and belted checkouts, and sells beer, wine and spirits.

Poundland has been trialling fresh food in a handful of convenience stores but this is the first time the retailer has stocked these items in a main store. It plans to add the new ranges to more than 20 other large stores this year.

“It’s a natural extension of what our customers are looking for,” said Barry Williams, Managing Director of Poundland.

The store also hosts the chain’s largest selection of Pep&Co clothing and homeware. And there is a dedicated Rimmel cosmetics display and hot food and drinks.

Some discounters saw slower growth during the pandemic as people returned to doing big shops in the major supermarket multiples and bought more online. However, since the easing of restrictions and the spike in inflation, discounters are proving popular again.

Speaking to the BBC, Williams said: “Our business is growing. The size of the basket that shoppers are spending with us is growing quite dramatically.

“I’m seeing shoppers shop around a lot more particularly than what they were doing during the pandemic. There are locations that are coming back to life again, I think shoppers are definitely on the hunt for value now”.

Like most retailers, Poundland is grappling with rising costs. “Inflation is hitting us right across the board,” said Williams.

“The cost of transportation and fuel, the cost of containers – that is double-digit percentage inflation that we’re seeing right now. And if you think of wage inflation for our colleagues, which we’re supportive of, that is high single per cent inflation as well. I’ve got suppliers approaching us, and they all want cost increases”.

With shoppers seeking value, Williams stressed that Poundland was determined to keep its prices competitive. “I’m not a magician, I’m not Paul Daniels. I can’t magic all of this stuff away,” he said.

“What I can do is work as hard as I can on behalf of shoppers, to make sure that we mitigate as much as we can to protect them. Our view is really clear – that people who work the hardest on behalf of shoppers are the ones who are going to win. The ones who just pass that on to the shoppers. Well, shoppers are king, they can go wherever they want.”

NAM Implications:

• Cash-strapped shoppers is a given…
• …but Tesco and the discounters unlikely to surrender share, even in fresh.
• However, Poundland reputation for value may help…
• In which case, watch for Poundland moves into other categories.