Waterlooville Poundland

I think it is obvious to everyone now that the old Woolworths premises will be used by Poundland.
The comments at The News sums up many peoples thoughts... 'Oh no, not another shop full of...'

But it made me think. How do they maintain prices at or below £1?

Here's my thoughts about how a 'pound' shop might keep £1 prices in 50 to 100 years from now:

1. Inflation goes up, prices go up, they sell progressively different products, always keeping them within £1. Eventually in 50 years or so, the only thing they can sell is single rubber bands, a single chewy sweet, a thimble full of shampoo etc for a £1 each.

2. They sell the same or similar products as today over the same timescale as scenario 1 and inflation in the UK goes up. They need to find progressively cheaper labour in foreign countries, exploit the cheapest resources etc. so eventually their suppliers set up factories in the middle of the Amazon Rain forest and employ the children from local tribes.

3. They manage to turn the UK into a communist dictatorship which sets £1 prices on all the products forever.

4. They manipulate the markets so that inflation remains stationary or we have deflation. Not much different to 3 really, since they would need enormous influence.