Dean Underwood, IT Director at Poundland & Dealz, talks challenges, cultural shift, and the company’s digitally transformed future

It’s a complicated time for the UK’s retail sector. A combination of factors – from global supply chain woes to Brexit and aftershocks from the cost-of-living crisis – are changing consumer behaviour in an economy still vulnerable in the wake of the COVID-19 pandemic. “The pandemic fundamentally shifted business attitudes,” reflects Dean Underwood, IT Director at Poundland & Dealz.

For many business leaders, Covid was a wake-up call. “A lot of them recognised that investing in technology was no longer optional,” he adds. With the companies that lagged in tech investment facing painful transitions, Underwood has seen that continuous technology investment is now essential for agility, enabling businesses to respond to crises, market changes, and competitor pivots. “Without a strong technology foundation, agility is impossible,” he says. 

Agility, resilience and growth

Agility, resilience, and growth are fundamentally reliant in the UK’s retail sector right now, as businesses compete fiercely for revenue at a time when the average wage has barely moved in decades. By 2028, pay adjusted for inflation – real wages – is forecast to have grown on average by just £13 a week over the past 20 years, and factoring for inflation, weekly wages have grown by just £16 in 14 years.

“The big supermarkets are aggressively targeting the value sector with loyalty programs like Tesco Clubcard and Nectar,” says Underwood. “Traditionally, we are known for offering products at amazing value, but now we need to differentiate even further.” Growing from a single location in Burton-upon-Trent in 1990 to more than 850 stores across the UK and the Republic of Ireland today, Poundland & Dealz is the UK’s most recognisable value retailer brand. However, Underwood explains that the business —is facing a more challenging market than ever. “In retail, particularly in a value-focused environment like Poundland, maintaining low prices while facing rising costs is challenging. A pound in today’s market would have been worth the equivalent of £2.40 when the business began,” says Underwood. 

Nevertheless, Poundland & Dealz has committed to keeping over 1,500 products priced at a pound or less. To do this, Underwood explains, “balancing technology investment with cost is critical”. We spoke with him to learn more about the process of digital transformation that supports the customer, the employee, and the bottom line. 

Making the case for transformation

Just like no company can afford to ignore the need to embrace new technologies, no successful organisation can afford to take an unexamined approach to its digital transformation. Underwood explains that, as an IT leader in a business where product prices for the customer are so critical, he faces the challenge of justifying digital transformation investment. “We must prove that spending on technology is as impactful as investing in product pricing,” he says. “For example, my request to fund a new data warehouse competes directly with the Commercial Director’s goal to maintain affordable prices. The customer always comes first, but investing in supply chain efficiencies lowers operating costs, helping us keep prices down. It’s our responsibility to demonstrate the value of every investment.”

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