This week Poundland announced its plan to target the ‘top-up’ grocery shop and bigger basket spend. This follows recent moves to introduce multi-price points and the launch of its range of chilled ready meals across all stores following a trial in 24 stores across the Midlands. The roll out of the new price point strategy has enabled the introduction of new products, specifically in health & beauty and food and grocery ranges to cater for the top-up shopper.
Our ShopperVista research continually tracks changes in shopping behaviour and value continues to be one of the three core shopper needs which retailers and suppliers need to deliver against for shoppers. Given that the top personal economic concern of shoppers for the year ahead is ‘food prices’ it is no surprise that ‘value’ continues to draw shoppers to the discounters.
Source: ShopperVista Survey Jul-Sep’19, Base – 2,579 shoppers.
Topping up in variety discounters
Top-up shops are now the most common overall mission with more shoppers on a top-up mission compared to a main shop. So, it is not that surprising that Poundland want to appeal to those shoppers grabbing a few items.
While ‘top-up’ is currently not the main shopping mission for variety discount shoppers, (ranking third behind; non-food -55% and Health and Beauty -39%), one in four are visiting variety stores on a top-up mission, (25% in 2019 compared to 23% in 2018). (Jul-Sep’19). And just over four in ten shoppers (41%) agree they would use a variety store more often if there was a bigger range of food, drink and grocery products available. Delivering for shoppers on a top-up mission also means providing an easy and efficient experience; convenient location and speed & ease of getting around the store are top drivers of store choice.
As Poundland has a strong presence in many high-street locations and with the introduction of the new price points allowing them to diversify their food and grocery offering it has the potential to deliver against all the needs of the top-up shopper.
Shopper Insight Manager, IGD
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