Poundland recently announced the closure of nearly 150 stores and the elimination of 2,200 jobs as part of its restructuring plan. The discount retailer now operates 651 stores, down from approximately 800, and its workforce has reduced from 14,200 to around 12,000 employees.
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 overall restructuring efforts. The company was acquired for a nominal fee of £1 by investment firm Gordon Brothers in June last year, avoiding administration after its rescue plan, which included store closures, was approved by the High Court in August.
Poundland has confirmed the completion of its restructuring program but cautioned that there is still much work to be done to achieve its objectives. The company stated that any future closures would be a result of standard lease events typical for a retailer with a large store network.
Despite a 2.9% decrease in like-for-like underlying sales for the quarter ending December 28, Poundland reported a 2% increase in comparable store sales by volume after lowering prices to reinforce its discount positioning. The company’s underlying earnings in the first quarter rose to £17.3 million, up from £8.4 million, meeting its expectations.
Managing Director Barry Williams expressed that while progress has been made in re-energizing the business with lower prices and a more focused product offering, there is still more to accomplish. Poundland’s strategic focus for 2026 will emphasize delivering the desired product ranges and price simplicity that customers seek across all store departments, including clothing, homewares, and grocery aisles.
Poundland has revamped its pricing structure by reintroducing simple £1, £2, and £3 grocery pricing across its UK stores, with a majority of grocery items priced at £1. The company has also discontinued certain categories, such as frozen foods and some chilled ranges, and ceased its online operations.
Moreover, Poundland is reintroducing its in-house designed Pep&Co clothing to stores in the UK and Ireland, offering 90% of items priced below £10 starting next week. The company is also launching a nationwide advertising campaign next week to spotlight the everyday value of its product ranges.
