What will shoppers make of Poundland expanding its chilled and frozen proposition? - July update

Sylvia Jeanes
Shopper Insight Manager
@IGDShopperNews

Date : 30 June 2020

As Poundland resume their plan to roll out its new chilled and frozen range to a further 19 stores following a successful trial at the end of last year we explore shopper’s thoughts.

The roll-out, which was planned in March, was put on hold due to the pandemic whilst Poundland focussed on keeping as many stores open during the crises.

The next 19 stores to get an aisle of fridges and freezers will span the North East, Midlands and South East through July with a further 27 planned by September.

The chilled and frozen range is part of a partnership with Frozen food retailer, Fulton Foods. The range will include a range of frozen pizzas and fresh vegetables.

The evolution of Poundland

2019 was a year of change for Poundland with the retailer making significant deveoplements to its proposition. In November, I reported on Poundland’s plan to target the ‘top-up’ mission to encourage bigger basket sizes following the introduction of multiple-price points and the launch of chilled ready meals across all stores. Whilst non-food missions (56%) are the primary reason for shopping in variety stores, a fifth choose to shop in variety discounters for a ‘top-up’ shop (26%), Jan-Mar’2020 rising to 31% in March’2020.

Through the pandemic we have seen significant changes in shopper behaviour, channels and missions. At the start of the crises we saw top-up shops become more common-place but as shoppers have sought to minimise their visits to store we have seen the return of larger shops. In addition, saving money has become an increased focus for shoppers as a result of COVID-19. In March and April 2020, 23% of shoppers were more foccussed on saving money in the year ahead, a jump from 18% in Jan’2020. Saving money is the standout store choice driver for variety shoppers with 77% stating ‘Helping me to save money’ is the top reason for shopping their (Jan-Mar’20).

Source: ShopperVista. Base: 609 variety discount grocery shoppers, Jan-Mar’19,598 variety discount grocery shoppers Jan-Mar’20, 195 variety discount shoppers March’2020

Expanding the offering

Just over four in ten (48%) variety discount shoppers agree ‘ I would use a variety store more if they had a bigger range of food, drink and grocery products’ increasing to 57% amongst Poundland most recent shoppers (Jan-March’20). So as, Poundland shoppers are receptive to more choice and increased range and as shoppers overall become more focused on saving money, it will be interesting to see the warmth of welcome to Poundland’s extended offering.

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