Poundland launches first loyalty drive

Poundland has partnered with Mecca Bingo to launch its first loyalty promotion as it looks to create a “point of difference” in the increasingly competitive discount retail market.


Customers aged 25 and over will receive a £5 Mecca Bingo voucher to spend online when they spend £10 or more in-store in one transaction.

This week-long promotion (which commenced 26 November) will be followed by an offer that launches tomorrow (28 November) that will see shoppers given a voucher £2 off their next £12 shop after spending £10 in one transaction.

It echoes recent activity from supermarkets such as Tesco, Sainsbury’s and Morrisons, which have been offering customers a till receipt with money off their next shop if they spend a certain amount.

Richard Lancaster, Poundland trading director, says: “The introduction of third-party promotions is a great way to provide our customers with added value and create a point of difference, the Mecca Bingo promotion is the first of many to come. I’m sure lots of our 4.5 million customers will love it.”

The move follows Poundland’s first voucher activity in October, which saw spend-related reader offers appear in tabloid newspapers such as The Sun and downloadable tokens from the retailer’s Facebook page.

Poundland claims to be Europe’s biggest single-price discount retailer and reported a 19.9 per cent year on year increase in its gross margin to £287.7m in the year to April. Turnover rose 19.3 per cent to £780m.

Its biggest competitors in the UK are 99p Stores, Poundworld and Poundstretcher.

The UK discount retail market – which also includes chains such as Primark and Aldi as well as pound stores – is forecast to grow sales from £28.8bn in 2010 to £42.2bn by 2015 as shoppers tighten their belts due to financial constraints, according to research firm Keynote.

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