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The one pound proposition

The pound shop is back in fashion, with widespread media coverage of the success of Poundland, which may be an indicator of a return to thrift by the UK's shoppers. The ability of Poundland, run by c-store pioneer Jim McCarthy, to stock big brands at £1 - its top selling line is Nescafé coffee 100g - "provides a halo effect for the rest of the store". On the face of it, this seems to justify McCarthy's boast that his shop is about amazing value every day. But the shopper always decides what is value and what is not and the heart of pound shops is the ability to provide "useful stuff" like backscratchers, foot long shoe horns and feather dusters that no-one knows the price of. As the Guardian sums up, the shopper may not "actually, you know, need the stuff". The pound price point is having its hour but good retailers know value is a constantly shifting target. You have to keep your offer relevant and fresh and get the price right.
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