« Asda lowers petrol prices in time for bank holiday weekend | Home | Cash v Contactless payment »
Poundland profits amid change of attitudes
The rapid growth of Poundland, which has reported an 81% increase in profits, is more than just about saving money in difficult times, it’s part of an underlying shift in consumer attitudes, according to Verdict Research.
In the year before the recession, Poundland was regularly visited by 4% of all British shoppers, however today it pulls in almost 7% of the shopping public on a regular basis.
Poundland’s growth hasn’t just come from those squeezed by the recession, it has also rapidly grown its share of the most affluent customers. For example, in 2007, only 2% of AB consumers visited the store. Today, that figure has doubled and the chain pulls in just over 4% of this segment.
Neil Saunders, consulting director of Verdict Research, said: “The success of Poundland is as much about psychology as it is about economic necessity. The recession has made it acceptable to save money. It has taken some of the snobbishness out of where we shop and has made it trendy to be frugal. That’s changing the whole nature of shopping.”
Verdict believes that the trend towards considered consumption is one that will endure long after the economic slowdown has passed into memory.
Saunders added: “This is something that’s here to stay. The recession is like a retreating glacier that’s leaving behind a radically different landscape.”
Topics: retail sales |
Comments
You must be logged in to post a comment.