‘Why did Poundland’s ecommerce trial fail?’ – Econsultancy
Nikki Gilliland says, “At the end of 2015, Poundland embarked on an ecommerce trial in a bid to transfer the success of its bargain stores online.
However, it’s just been reported that the retailer is to call time on the venture after failing to ignite much interest.
So, why exactly did it fail? Here’s a bit of insight into the story.
Failure to convert existing shoppers
Having opened its first ever store over 25 years ago, Poundland is built on a tried and tested formula. The reason behind its success is that it knows exactly what its customers want and it unashamedly delivers it.
Its stores – a mainstay on most UK high streets – boast bargain multipacks of everything from batteries to fizzy sweets. Though it famously uses tricks of the trade in order to keep its prices so low, such as ‘re-engineering’ products to shrink the size or quantity of items, faithful customers appear well aware of this fact, maintaining that it offers better value than other stores or budget supermarkets.
With the arrival of its online shop, Poundland failed to recognise that most existing customers do not typically use it like a standard or large supermarket”.
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