Poundland To Start Charging 97p In Stores Being Undercut By 99p Rivals

In a move likely to rock the very foundations of your belief in the UK high street, Poundland has announced it is to 'slash' its prices - to 97p.

Jim McCarthy, chief executive of the bargain emporium chain, announced the move as an attempt to fend off competition from the proliferation of 99p stores.

The price change will only affect stores where there is nearby competition from an undercutting rival.

Would 3p difference make you shop elsewhere?

McCarthy told Retail Week: "... it sends the message that we’re not a soft touch. It’s a bit like when a supermarket has a competitor opening nearby.

"They have hosts of tactics to dampen the impact."

Poundland has managed to survive economic uncertainty so far and is currently running a competition to win £400 in vouchers to celebrate the opening of its 400th store.

The chain made headlines in February when a government scheme requiring jobseekers to work for free for the store was unlawful.