97p Land

Posted At: 15 May 2013 16:31 PM
Related Categories: Retailers

Poundland has cut its prices to 97p in a bid to undercut its 99p rivals. Is it really an effective tactic or does it conflict their entire branding?

The retailer has rolled out this new strategy in its East Ham, Dudley and Chelmsley Wood stores where there is direct competition from other low-cost stores.

Jim McCarthy, Poundland’s chief executive, told Retail Week that the move was part of the company's "competitor response" strategy.

He said: “It is those early weeks [when a rival opens] that are very important and if you can pop the balloon early we find that doing that rather than nothing at all is helpful“

Effectively it is 3% price slash per item and is perhaps bigger than some of the percentage cuts promoted by Asda/Tesco/Sainsbury’s. But seriously, is it something to get excited about? If you are like me, and don’t like to carry pennies, it might put you off.

Maybe this is something charities can be happy about, as the increased loose change might end up in their pots! What do you think?

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