Poundland: Why we deserve pride of place on Princes Street

The article quoted commentators who said our presence will make Princes Street “discount and touristy” and “downmarket”, at a time when other retailers are moving their stores to the new St James Centre opening next year.

This is not the first time we have had to defend ourselves against snobbery and people using the Poundland name pejoratively. Last year, we responded to a teacher who described the equivalent of a C grade at GCSE as a “Poundland pass” in an article for the Times Educational Supplement. We won an apology from Thameslink after it used our name in response to a complaint about poor service. Just last week, the Daily Mirror ran a headline calling Boris Johnson a “Poundland prime minister”.

“It’s time this belittling of retailers – especially discount retailers – by people who should know better came to an end”

It seems not to matter that we’re committed to high streets across the UK.

Our detractors ignore the 7 million shoppers we deliver each week to town centres that help drive footfall.

They dismiss the fact that a significant number of shoppers might find what we offer an attractive proposition, which helps them save money on what they need and delights them with things they want at a price that means they can have it.

No, our arrival is seen by some commentators as a metaphor for “high street decline”.

The high street lives

Frankly, it’s time this belittling of retailers – especially discount retailers – by people who should know better came to an end. That’s why we proudly posted the Times headline on our pre-opening window poster.

Don’t get me wrong. The challenges facing high streets are undeniable. Springboard recently reported at 2 per cent footfall decline across all locations between August and October, accelerating to 4.9 per cent in October on the high street.

The roll call of names that have suffered because of that – Hardy Amies, Bennetts, LK Bennett, Bonmarché, Mothercare – grows longer each week.

But as Poundland’s first transformation director, with a remit to change what we bring to customers at a pace that meets their changing demands, I simply don’t buy the death of the high street narrative.

In the early 1990s, Sam Walton at Walmart was asked about what he thought of that decade’s recession. He thought about it for a moment and then said he was refusing to participate in it.

So it should be for high street retailers. And so it is for us here at Poundland.

The value triangle

We’re not witnessing the death of the high street but its renewal.

Yes, there are casualties, but we’ve decided, like Walton did, not to participate in that story and instead forge our own destiny.

That’s why Poundland is changing.

Rolling out new categories such as clothing sold with authority in a significant number of stores.

Piloting new simple pricing that allows us to offer a much broader range for customers while deepening the promise we make to shoppers to deliver amazing value.

“We’re changing because there is no other option for retailers that want to continue to thrive”

Investing in training our people as we revolutionise our behind-the-scenes processes to drive productivity at pace.

We’re changing because there is no other option for retailers that want to continue to thrive. We see two main trends that mean discount retail is well-placed.

First, while Brexit uncertainty is a factor, the greater issue driving consumer confidence is lower real wages and disposable income. Recent PwC research showed housing costs for the average Briton will exceed 30 per cent of income. Over the next few years, that’s not going to change for many people.

Second, by recognising and meeting the mission the customer is on, be it convenient grab-and-go, a cupboard stock-up or spending some time being inspired and excited at a consistently amazing value.

We know customers are increasingly focused on their costs, but not at any price. They will not sacrifice quality or choice. Those retailers looking to thrive must get that value triangle right.

And when they do – and the UK has many strong, vibrant and growing discount retailers – the results are dramatic. In fact, August’s Kantar data suggested the discount channel was attracting three-times the sales that are moving online.

Transforming business

So, when I’m at the new Poundland Princes Street store, which opens this weekend, whatever the handwringers say, I know we deserve our place there.

We’re transforming our business to enable us to thrive to meet the needs of a changing customer.

I have a feeling our Princes Street store will be more popular with the people that really count – our customers – than it is with the Scottish chatterati.

But the sooner those commentating on the demise of the high street stop and begin to focus on how we can offer more to customers – be that through better transport links and parking to make shopping more convenient, or through supporting more of what customers want, from services and dining to shopping – the better.

In the meantime, if The Times Scotland would like to see more of what we believe customers want, they are welcome in our stores. They might find something they like, at a price that knocks their sporrans off.