Poundland has closed 149 stores and cut 2,200 jobs as part of a rescue plan following challenging trading conditions and unpopular clothing ranges that pushed the discounter into the red. The company, bought for £1 from Pepco Group by US restructuring specialist Gordon Brothers in June 2024, has refocused on £1 items, with 60% of its stock now at that price.
The retailer is relaunching its Pep & Co clothing brand after a switch to ranges supplied by its former parent group hit sales. Adult clothing will be in stores by the end of this month, with children’s and baby wear arriving in February.
Poundland reported that underlying profits more than doubled to £17.3m in the three months to 28 December compared with the same period a year before. The number of items sold rose 2%, but sales at established stores fell 2.9%, even excluding categories it no longer sells.
The closures are part of a restructure announced in June 2024 after the retailer posted a £51m pre-tax loss for 2024. Plans included shutting at least 68 stores and up to 80 more, cutting rents, ending online sales, ditching its Perks loyalty app, and no longer offering frozen and most chilled foods. Its frozen and digital distribution centre in Darton, South Yorkshire, and national distribution centre in Springvale, Bilston, West Midlands, have closed, while centres in Wigan and Harlow continue to operate.
Barry Williams, managing director of Poundland, said the significant store closures were now finished, adding: “We have clear indications from the work we’ve already done, that we’re on the right track.” He noted customers wanted a simpler offer that “keeps its promise of amazing value”. Gordon Brothers said it would invest up to £80m to help turn the business around.
