Poundland recently announced the closure of nearly 150 stores and the elimination of 2,200 jobs as part of its restructuring plan. The budget retailer now operates 651 stores, down from approximately 800, and its workforce has decreased from 14,200 to around 12,000 employees. In addition, Poundland shut down two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands, as part of its reorganization.
Following its acquisition by investment firm Gordon Brothers for £1 last year, Poundland avoided administration through a rescue plan approved by the High Court in August. The company confirmed the completion of its restructuring program but acknowledged the need for further efforts to regain stability.
Poundland stated that any future closures would result from standard business lease events common for retailers with an extensive store network. Recent Poundland data revealed a 2.9% decline in like-for-like underlying sales for the quarter ending December 28. Despite price reductions to reinforce its discount positioning, comparable store sales by volume increased by 2%.
In the first quarter, underlying earnings at Poundland rose to £17.3 million, an increase of £8.4 million, aligning with expectations. Managing Director Barry Williams emphasized the importance of lower prices and a more focused product offering in the company’s revitalization. Poundland plans to concentrate on delivering desired ranges and price simplicity across all departments in 2026, including clothing, homewares, and core grocery sections.
The company revamped its pricing strategy by reintroducing £1, £2, and £3 grocery pricing across all UK stores, with a majority of grocery items priced at £1. Poundland also discontinued certain categories like frozen foods and some chilled ranges, along with terminating its online operations. The reintroduction of in-house designed Pep&Co clothing to UK and Ireland stores with 90% of items priced below £10 is scheduled for the coming week. Additionally, Poundland will launch a nationwide advertising campaign to emphasize the value of its product ranges.