Poundland cuts prices to 97p to beat 99p rivals

POUNDLAND, the discount retailer, has undercut a host of imitators by starting to charge 97p in areas where rivals selling at 99p have sprung up.

The company, which sells everything from toiletries to cut-price DVDs, said it had made the move in three areas where similar stores had sprung up as part of a “competitor response” strategy.

The move comes as Poundland’s owner, US private equity group Warburg Pincus, mulls plans for a £600m sale of Poundland, which has around 400 stores but plans to expand to more than 1,000 over the next decade.

“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,” chief executive Jim McCarthy told Retail Week, adding: “It sends the message that we’re not a soft touch.”

McCarthy said the price cut had already been implemented in its East Ham, Dudley and Chelmsley Wood outlets.