Poundland has announced the closure of nearly 150 stores and the elimination of 2,200 jobs as part of its restructuring efforts. The budget retailer now operates 651 stores, down from approximately 800, with its workforce reduced from 14,200 to around 12,000.
In addition to the store closures, Poundland shut down two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands, as part of its overhaul. The company, which was sold to investment firm Gordon Brothers for £1 in June last year, successfully avoided administration after receiving approval for its rescue plan, including store closures, in the High Court in August.
Poundland has completed its restructuring program, but it emphasized the need for further actions to regain stability. 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.
Latest data from Poundland revealed a 2.9% decline in like-for-like underlying sales for the quarter ending on December 28, attributed to price reductions to reinforce its discount positioning. However, the company reported a 2% increase in comparable store sales by volume. The underlying earnings for the first quarter rose to £17.3 million, exceeding expectations with a £8.4 million increase.
Barry Williams, Poundland’s managing director, acknowledged the progress made in refocusing the business with lower prices but highlighted the ongoing challenges. Looking ahead, the focus for 2026 will be on enhancing product ranges and price competitiveness across all departments to meet customer expectations.
Poundland has revamped its pricing strategy by reintroducing a simplified £1, £2, and £3 grocery pricing model across all its UK stores, with the majority of grocery items priced at £1. The company also discontinued certain categories such as frozen foods, some chilled ranges, and its online platform.
As part of its strategy, Poundland will reintroduce Pep&Co clothing, with 90% of items priced below £10, in its UK and Ireland stores. Additionally, a nationwide advertising campaign is set to launch next week to promote the affordability of its product offerings.
