Pound stores show staying power
According to the latest YouGov research, pound stores continue to thrive in the UK’s high street and have created loyalty amongst savvy shoppers who will not turn their backs on the deal outlets even if the economy picks up. Latest research from YouGov finds that almost one third (32%) of GB adults has shopped at a pound store in the last three months.
Almost a quarter (23%) of respondents have bought products from one or more of key categories we asked about at a pound store in the past three months and are spending less at supermarkets/other stores in at least one category as a result. Cleaning products are the most popular pound store purchases - 21% of respondents have bought these items in the past three months. 18% have purchased toiletries, 17% have bought chocolate and/or sweets and 13% have purchased snacks and/or crisps.
Saving money is the overwhelming reason for using pound stores, with 60% of respondents citing this as the main reason for shopping there. This is particularly true for women and older respondents: 67% of females and 66% of those 55 and older head to pound stores to be thrifty. Crucially, YouGov’s research directly challenges the myth that pound stores cater mainly to C2DEs (social grades). In fact, ABC1s are just as likely to shop at pound stores, which suggests ‘savvy shopping’ is not simply a reflection of relative wealth. When it comes to reasons for shopping in pound stores there are however regional differences: almost a quarter (24%) of respondents in London say the ‘deals on offer’ are the main reason they shop in pound stores; in Scotland the figure rises to 41%, but just across the border in the North of England 19% of pound shop customers cite deals as their main reason for shopping.
YouGov Consulting Director Rob Cushen says that pound stores will continue to chip away at the supermarkets’ share of wallet in key categories like cleaning products unless and until they offer closer pricing or deal parity. “Our research suggests that shoppers aren't simply planning to head back to supermarkets when the financial situation improves: 74% of respondents who bought something from a pound store in the last three months say they will continue shopping there even if the economy improves. What this means is that the deals on offer are creating loyalty amongst savvy shoppers and larger supermarket chains will need to fight hard in these categories to rebuild share.”
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