Single price retailer Poundland has announced that it aims to increase the range of clothing, from sister brand Pep&Co, it offers in its stores.
Retail Gazette reported that the group is seeking to have 100 stores offer Pep&Co clothing by the end of the year, with a target of having the range available in 200 in the near future.
Pep&Co, which was launched by the former head of Asda's George clothing range, Andy Bond, is owned by Steinhoff, which also owns Poundland.
“We are putting clothing into big Poundlands," Bond said. "We are bringing back to high streets the kind of clothing that was once loved. This is not to shuffle in inflation but about new items.”
Pricing Strategy
The move will enable the retailer to offer products priced at above £1. In Ireland and Spain, where it operates the Dealz brand, multiple tiers of pricing are in place in its stores, however the majority of items in Poundland still retail for £1.
Bond also commented on the potential impact of Brexit on the company's £1 pricing strategy, with Sterling likely to experience a further setback in the cooing months. He said that the company was doing what it could to combat inflation as well as 'shrinkflation' - i.e. products that are smaller in size yet retain the same price.
“We have got a lot of opportunity to take cost out of our business and doing so allows us to invest in our product offer and not make shortcuts for customers in either size or quality," Bond was quoted by Retail Gazette as saying.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: The European Supermarket Magazine.
