Poundland’s Dealz subsidiary in Ireland has begun adding Pep & Co clothing outlets to its larger outlets. The move puts the retailer in direct competition with discount clothing stores such as Penneys, The Irish Times reports.
Pep & Co is owned by Poundland’s parent company, Steinhoff International, and it already operates 170 stores in the UK, of which 140 are located inside Poundland discount outlets. Prices in the UK range from GBP5 (EUR5.60) for a pair of trainers to GBP12 (EUR13.50) for jeans.
In line with the discount sector as a whole, single price point retailers are reinventing themselves to become increasingly sophisticated. As these retailers mature, they have realised that selling items at a fixed low price point may keep things simple and drive footfall to the store, but it also limits assortment opportunities. Poundland, of which Dealz is an Irish subsidiary, announced a while ago that it planned to experiment with a broader range of price points in store as well as a wider range of products to give the company more flexibility. By broadening out in this way the retailer has more options to enter new product categories and to compete more effectively against strong discount competition.
Pep & Co is a sister company to Poundland, owned by parent company Steinhoff and founded in 2015 by former Asda CEO Andy Bond. The shop within a shop model at Poundland has worked very successfully to date, according to the company, and allowed the retailer to co-locate its two banners and leverage opportunities across the shopper demographic. “The link to Poundland, or Dealz in this case, is one of value,” Managing Director Adrian Mountford told The Irish Times. He said that the aim in Ireland would be to bring Pep & Co to larger Poundland stores in small town locations where there was limited competition from other clothing retailers. According to the company, the retailer has even been struggling to restock womenswear at its UK Poundland outlets in order to keep up with demand.