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, with its workforce reduced from 14,200 to around 12,000 employees.
As part of its overhaul, Poundland shut down 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, including store closures, in the High Court in August.
Poundland has completed its restructuring program but emphasized that there is still more work to be done to regain stability. The company clarified that any future closures would be a result of routine lease events common for a retailer with a large store network.
Despite a 2.9% decline in like-for-like underlying sales in the quarter ending on December 28, Poundland reported a 2% increase in comparable store sales by volume, after implementing price reductions to emphasize its discount pricing strategy. The company’s underlying earnings for the first quarter rose to £17.3 million from £8.4 million, in line with expectations.
Barry Williams, the managing director of Poundland, acknowledged the progress made in reinvigorating the business with lower prices and a more focused product offering but stressed the ongoing need for improvement. Looking ahead, Poundland plans to concentrate on delivering the desired product ranges and price simplicity across its stores in 2026, particularly in clothing, homewares, and grocery sections.
Poundland revamped its pricing structure by reintroducing a simplified £1, £2, and £3 pricing system for groceries across all its UK locations, with approximately 60% of grocery items now priced at £1. The company also discontinued certain categories such as frozen foods and certain chilled ranges, as well as discontinuing its online operations.
In addition, Poundland is reintroducing its in-house designed Pep&Co clothing to its stores in the UK and Ireland, with 90% of items priced below £10 set to be available starting next week. The company also plans to launch a nationwide advertising campaign next week to emphasize the everyday value of its product offerings.