Poundland recently announced the closure of almost 150 stores and the elimination of 2,200 jobs as part of its restructuring efforts. The budget retailer’s store count now stands at 651, 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 of the previous year, avoiding administration following the approval of its rescue plan, which included store closures, in the High Court in August.
Poundland has confirmed the completion of its restructuring program but cautioned that there is still much work ahead to regain stability. Any future closures will result from standard lease events expected at a retailer with a large store network.
In the latest financial report, Poundland revealed a 2.9% drop in like-for-like underlying sales for the quarter ending December 28. However, it noted a 2% increase in comparable store sales by volume, attributing the decline in sales to price reductions aimed at returning to its discount-oriented approach.
The company’s underlying earnings for the first quarter rose to £17.3 million from £8.4 million, meeting its projected targets. Managing director Barry Williams acknowledged the progress made in refocusing the business with lower prices but emphasized the ongoing need for further improvements.
Looking ahead to 2026, Poundland plans to concentrate on delivering the desired product ranges and price simplicity for customers, particularly in clothing, homewares, and grocery aisles. The company has revamped its pricing strategy to offer grocery items at fixed prices of £1, £2, and £3 across all UK stores, with a majority priced at £1. Additionally, it has reintroduced Pep&Co clothing, with 90% of items priced below £10, and is launching a nationwide advertising campaign to highlight the value of its product ranges.
