Bargain Buy Dump Bins: How Poundland Broke £1 Billion September 14, 2016 0 comments From investing in high volumes of products to fill its shelves to promoting low prices, Poundland is more than at home with taking risks in retail. And after reaching its £1 billion sales milestone last year, it’s clear that this discount store’s retail strategy is paying off. In a time of financial unease and a currency that’s facing a rapidly decreasing exchange rate, consumers are turning to pound-stretching discount stores for the household basics. But despite this mass-trade, how can this recession success-story be making millions with its unchanging prices? In today’s post, we’re taking a look at the tricks of the trade to see how this dominating discount store broke £1 billion. From promoting low price points to investing in eye-catching point of sale stands, we’re learning how retailers can adopt the selling strategies used by Poundland. Low price points on every product With cheap deals throughout the store, Poundland continues to attract customers. While a pound may seem like a minimal amount to the majority of shoppers, Poundland have found success in the art of up-selling and encouraging additional in-store spending. Encouraging the consumer to pick up related products – such as batteries for the battery operated device in their basket – and selling popular products in non-standard sizes, means retailers are seeing increased sales at the till point. These tactics mean that in Poundland, the pounds have soon stacked up – and like-for-like revenues rose by 2.4% in 2015, while total sales soared to the £1.1 billion mark. Bulk-buying discounts With 450 stores open nationwide, Poundland is fortunate enough to bulk-buy its stock in return for a hefty discount from the supplier. With ‘Amazing Value Every Day’ at the forefront of the company ethos, the combination of disguised own-brands and the more well-known varieties means consumers are regularly returning for the trusted yet low-priced logos. Poundland’s special offers often mean consumers can buy in bulk too. From multipacks to 2-for-1 promotions, the chain concentrates on shifting products from its shelves rather than maximising the profit margin for each individual item. Bargain buy dump bins Thrifty customers love delving into a dump bin in search of a bargain, which makes Poundland the perfect place for cash-concerned consumers. By placing customised free standing display units in the most prominent places around the store, frugal shoppers are unable to resist adding these products to their basket. Similarly, an FSDU stacked with confectionery or novelty gifts near the till point is a fantastic way of appealing to the impulse buyer at the last minute. With an unreliable financial climate, discount-stores can only rise in popularity. While promotional prices won’t always be feasible for retailers, learning from the Poundland phenomenon and adapting their strategies for your own marketing means your sales will soon skyrocket. With a range of customisable cardboard dump bins and POS displays available from shop4pop.com, your store will soon benefit from an increase in sales. Ready to maximise your profit margins? It couldn’t be easier with high-quality retail display services – just take a look at our stunning range of products online!