900 Poundland stores to offer Pep & Co fashion line

By

Sandra Halliday

Published
Dec 19, 2016

UK value retailer Poundland has expanded on its plans to sell one of parent company Pepkor’s fashion brand in its UK stores.

The Pep & Co fashion brand will be available in all 900 UK Poundland stores, a radical expansion from Pep & Co’s current 50 high street standalone locations.

Ten Poundland stores will get 2,500 sq ft shop-in-shop areas from February with another 50 of the chain’s largest stores also due to for a deep dive into brand soon. Pep & Co will be available on a smaller scale in the remaining stores with womenswear and kidswear as the main offer.

“The relationship between Pep & Co and Poundland will become increasingly significant,” Pepkor Europe chief Andy Bond told the Guardian. “My ambition is that, over time, Pep & Co will become to Poundland like George is to Asda.”

The fashion items are unlikely to be all sold at £1 with 5% of the retailer’s offer currently coming in above that price and the recent fall of the pound against the dollar adding to pricing pressures.
Bond said £1 will remain the anchor price for the chain but it has been experimenting with goods priced below that figure, as well as items for £8 or more.

He said: “We will always anchor Poundland around the trust of £1 pricing but the research from the business isn’t that people shop there because things are £1 but because they get amazing value. There are some areas where sticking to £1 doesn’t let you have a credible offer - like toys and clothing.”

He added: “The journey pound stores are going on is the same as the dollar stores in the US. The vast majority of them have moved from single price to multi-price - from one price to a small number of prices.”