Poundland has 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 has reduced its workforce from 14,200 to around 12,000 employees. Additionally, two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands, were shut down as part of the company’s overhaul.
Last year, Poundland was sold to investment firm Gordon Brothers for a nominal fee of £1 to avoid administration. The rescue plan, which included store closures, was approved by the High Court in August. Poundland confirmed that the restructuring program has been completed but emphasized that there is still work to be done to achieve its objectives.
The company stated that any future closures would be due to standard lease events common for retailers with a large store network. Recent data from Poundland revealed a 2.9% decline in like-for-like underlying sales for the quarter ending December 28. Despite price reductions to reposition itself as a discount retailer, comparable store sales by volume increased by 2%. Earnings in the first quarter rose to £17.3 million from £8.4 million, meeting expectations.
Barry Williams, the managing director of Poundland, highlighted the progress made in refocusing the business with lower prices and a more compelling offering. However, he acknowledged that more efforts are needed for sustainable growth beyond cost management. The company aims to focus on enhancing product ranges and price simplicity in all departments to better serve customer needs.
Poundland revamped its pricing strategy by reintroducing £1, £2, and £3 pricing for grocery items across its UK stores, with a majority priced at £1. It discontinued certain categories like frozen foods and some chilled products, as well as terminating its online operations. The company is reintroducing its in-house designed Pep&Co clothing range in UK and Ireland stores, with 90% of items priced under £10. Furthermore, Poundland is launching a nationwide advertising campaign next week to highlight the value of its product offerings.