Poundland has announced the closure of nearly 150 stores and the elimination of 2,200 positions as part of its restructuring plan. The discount retailer now operates 651 stores, down from approximately 800, with a reduced workforce of about 12,000 from 14,200 employees.
As a part of its overhaul, Poundland shuttered two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands. The company was acquired for £1 by investment firm Gordon Brothers in June last year, avoiding administration following the approval of its rescue strategy, which included store closures, in the High Court in August.
Poundland confirmed the completion of its restructuring program today but cautioned that there is still work to be done to achieve its goals. The company stated that any future closures would be a result of standard business lease events typical for a retailer with a large store network.
Recent data from Poundland indicates a 2.9% decline in like-for-like sales in the quarter ending December 28. Despite slashing prices to return to its discount roots, the company reported a 2% increase in comparable store sales by volume. In the first quarter, underlying earnings rose to £17.3 million, up from £8.4 million, aligning with expectations.
Barry Williams, Poundland’s managing director, acknowledged the progress made in refocusing the business with lower prices and a more compelling offering but emphasized that there is still much to accomplish. The company plans to concentrate on delivering the desired ranges and price simplicity across all product categories in 2026, including clothing, homewares, and core grocery items.
Poundland revamped its pricing model by reintroducing a straightforward £1, £2, and £3 grocery pricing structure across all UK stores. Approximately 60% of grocery items are priced at £1. The company also discontinued certain categories such as frozen foods and selected chilled ranges, as well as terminating its online operations.
In addition, Poundland is reintroducing its in-house designed Pep&Co clothing line to UK and Ireland stores. The clothing range, with 90% of items priced below £10, will be available starting next week. The company is also launching a nationwide advertising campaign next week to emphasize the everyday value of its product ranges.