Poundland pilots new merchandising in 15 stores as like-for-like sales rise
Poundland has reported a rise in like-for-like sales and is piloting a new initiative in selected stores to expand the availability of general merchandise and clothing ranges.
The trial, which began rolling out in mid-September, is now live in 15 stores across England, Wales, Northern Ireland and the Republic of Ireland.
Subscribe to TRBPoundland said the pilot also includes improved store layouts, organised around customer needs and occasions rather than traditional retail departments.
The retailer is also testing customers’ reaction to an edited range of its PEP&CO clothing in the smaller pilot stores, where space has historically been limited.
Poundland said the results have been encouraging so far, with all 15 trial stores growing like-for-like sales and profitability last week, ahead of other stores in the chain.
The pilot is running alongside a root-and-branch range reinvention across Poundland’s store estate over the past 12 months. This has included the launch of an all new general merchandise offer, the return to simple prices in grocery aisles and, in clothing, the completion of the transition back to the PEP&CO brand.
Poundland has also confirmed that like-for-like sales growth in its fourth quarter ending 27 September was 3.3% or 6.4% on an adjusted basis. In addition, unadjusted like-for-like sales increased by 9.8% in the first week of its current quarter.
The retailer now expects profitability to come in at the upper end of expectations.
Barry Williams, Poundland managing director, said: “We ended Q4 with significant momentum, returning to positive like-for-like growth and that momentum has only strengthened in the first week of the new financial year.
“Our recovery plan is working, thanks to our investment in simple low pricing and new ranges, powered by our new in-house teams. That positive customer reaction is great news for our shareholders, colleagues and suppliers.
“And while our new merchandising pilot is a demonstration that it’s ‘business as usual’ at Poundland, what’s unusual is our new trial also highlights the top-to-bottom refresh of all our ranges over the last 12 months.
“We’re excited about putting those new items in front of our customers as they return to our stores.”
