Poundland adds more items to its offering – but do customers see the value?
Yougov’s chief executive Steve Hatch takes a closer look at the data behind the biggest stories in business. Here, he searches for value in Poundland.
Poundland announced an increase in the number of £1 products it offers from 1,500 to 2,400 on 6 January 2025, having cut the price of basics such as milk, bread, sugar and eggs last year. The discount retailer said the move was designed to “defy inflation and deliver amazing value” as purse strings tighten across the UK.
YouGov BrandIndex UK – which collects data on what the public thinks about a range of brands every day – suggests that consumers have taken notice. Poundland’s ‘Value for Money’ scores, a core measure for a budget retailer, increased from 15.1 to 22.7 (+7.6) between 5 January and 12 January, while ‘Impression’ scores, which track overall positive and negative sentiment, jumped 15.5 points from 2.5 to 18.0.
‘Customer Satisfaction’ saw an 11.6-point uptick from 13.2 to 24.8 over the same period.
Cutting prices is, of course, arguably an easy PR move, particularly for a company focused on the cheaper end of the market. It’s also not one without costs to the business: as the 35-year-old retailer pointed out that, the “pound” in the brand’s name would be closer to £2.42 today.
But the pressures of the cost-of-living crisis are real. YouGov data from last year revealed that 58 per cent of the public recently had to cut their spending, and 41 per cent expected to make similar cuts in future. These numbers rise even higher among younger Britons.
18-34 year-olds had a slightly negative opinion of Poundland before the announcement of more £1 products. On 5 January, ‘Impression’ scores were -9.0, but by 12 January, they had improved 19.1 points to 10.1.
Older age groups appreciated the reductions to £1 as well. ‘Impression’ scores among Britons aged 35-49 rose from 7.0 to 23 (+16), and scores among over 50s rose from 6.7 to 18.4 (+11.7), but their opinion of Poundland was already positive before the discounts were announced.
More £1 products will win over a general audience – but it also might help get younger customers who are feeling the pinch, and are generally less favourable towards the retailer, through the door.