The end of Poundland? Boss says products could cost as much as £7
BARGAIN hunters may soon have to fork out up to £7 for one item at Poundland as the retailer looks to push up prices.
The discounter made its name under the "Everything's £1" slogan but dropped it in 2015 after it began selling some items for £2 or £5.
And prices could be hiked by even more if it means adding better value to its ranges, according to the chain's top boss.
The prices of existing products will still stay at £1 but the chain is looking to stock more products with bigger prices.
Managing director Barry Williams told : "If something that is amazing value comes along and we think it is right for our proposition and right for our customers and it's £7, then we'll have a go at it."
He added that the amount of products that cost £1 was "gradually changing over time" meaning that the retailer is slowly stocking more expensive products.
Here's how to cut the cost of your grocery shop
SAVING on your shop can make a big difference to your wallet. Here are some tips from Hannah Maundrell, editor of Money.co.uk, about how you can cut the cost of your shopping bills:
- Write yourself a list – Only buy items that you need. If it isn’t on your list, don’t put it in the trolley
- Create a budget – Work out a weekly budget for your food shopping
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- Don’t buy pre-chopped veggies or fruit – The extra they’ll charge for chopping can be eye watering
- Use social media – follow your favourite retailers to find out about the latest deals
- Be disloyal – You may want to go to different stores to find the best bargains
- Check the small print – It’s always worth checking the price per kg/lb/litre when comparing offers so you’re making a like for like decision as a bigger box won’t necessarily mean you get more
- Use your loyalty cards – Don’t be afraid to sign up to them all. They all work slightly differently – work out what bonus suits you better and remember to trade in your points for additional rewards
Mr Williams also promised that the retailer would be honest about prices and would stock the more expensive products in separate aisles so that customers won't get confused.
The Grocer said that his comments came as Poundland reported like-for-like sales up 1.7 per cent for the nine months to 30 June but overall sales fell 5 per cent to £1.2 billion.
The discounter blames the drop in revenue on the closure of around 60 99p Stores - the chain which it bought in 2015 and then put into administration after converting most of the shops into Poundland branches.
Mr Williams also said that sales have been boosted by the downfall of competitors like Poundworld which have been forced to close after it went into administration.
"There's definitely a tailwind of that supporting us. How much is difficult to measure at the moment," he said.
There isn't a set date as to when customers may see the prices go up but it's believed that the more expensive goods will be introduced gradually.
Shortly after competitor Poundworld announced that it was closing its stores, shoppers spotted that it was selling everything including the shelves.
Asda is also making it harder for bargain hunters to bag a deal after it announced that it will be scrapping its popular price match scheme.
Tesco announced a similar move in July when it too ditched its price match policy in favour of lower prices on every day items.
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