‘Magic pound’ driving sales for c-stores

The £1 price point is still king for independent retailers, but they hope wholesalers will follow Poundland with the introduction of £2 and £5 price points.

Northampton Premier retailer Jimmy Patel, relies heavily on the £1 price point, describing it as “the magic pound”.

“It’s a psychological thing – items will always sell at that price because it’s easy to understand, even if it’s something that’s only really worth 80p,” he said.

However, he is worried Poundland’s new pricing strategy could mean further competition for independents.

Khuram Pervez, of Family Shopper in Newcastle, said he expects higher round points to become more popular.

“Booker is planning to introduce round price points of £2 and £5 on some lines but that hasn’t been implemented yet,” he said.

Raj Aggarwal, of Wigston Londis in Leicester, hopes higher round price points will be introduced by symbol groups.

“It’s hard to keep the cost that low due to inflation, I would like to see in future it going up to £1.50 or £2.”