Poundland announced the closure of approximately 150 stores and the elimination of 2,200 jobs as part of its restructuring plan. The discount retailer now operates 651 stores, down from around 800, with its workforce reduced from 14,200 to about 12,000 employees. In addition, Poundland shut down two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands, as part of the reorganization process.
Acquired for £1 by investment firm Gordon Brothers in June last year, Poundland avoided administration following the approval of its rescue strategy, which included store closures, in the High Court in August. The company confirmed the completion of its restructuring program today but emphasized the need for continued efforts to improve its performance.
Poundland stated that any future closures would be a result of standard lease events common for retailers with a large store network. Recent data from Poundland showed a 2.9% decline in like-for-like underlying sales for the quarter ending December 28, attributed to price reductions aimed at returning to its discount-oriented roots. However, comparable store sales by volume increased by 2%.
The company reported underlying earnings of £17.3 million in the first quarter, an £8.4 million increase in line with expectations. Managing director Barry Williams acknowledged the progress made in refocusing the business with lower prices but emphasized the ongoing need for improvement. Looking ahead to 2026, Poundland plans to focus on offering the ranges and price simplicity desired by customers across all store departments.
Poundland revamped its pricing structure by reintroducing £1, £2, and £3 pricing for groceries in all UK stores, with the majority of grocery items priced at £1. The company also discontinued certain categories, such as frozen foods and some chilled ranges, and ceased its online operations. In addition, Poundland is reintroducing its in-house designed Pep&Co clothing in UK and Ireland stores, with 90% of items priced below £10 starting next week. A nationwide advertising campaign is set to launch next week to emphasize the value of its product offerings.