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 has reduced its store count to 651 from approximately 800 and downsized its workforce from 14,200 to around 12,000 employees. Additionally, two warehouses in Darton, South Yorkshire, and Springvale in Bilston, West Midlands, were shut down as a part of the company’s revamp.
Last year, Poundland was acquired by investment firm Gordon Brothers for a nominal fee, preventing it from going into administration. The High Court approved its rescue plan, which included store closures, in August. Poundland confirmed the completion of its restructuring program but emphasized the need for further efforts to regain stability.
The company stated that any future closures would be a result of standard business lease events common for retailers with a large store network. Poundland’s latest financial report revealed a 2.9% decline in like-for-like sales for the quarter ending December 28. Despite reducing prices to emphasize its discount model, comparable store sales by volume increased by 2%.
In the first quarter, underlying earnings at Poundland rose to £17.3 million, up from £8.4 million, aligning with its projections. Managing Director Barry Williams acknowledged the progress made in re-energizing the business through cost reductions but highlighted the ongoing need for improvements. The company plans to focus on offering competitive pricing and a diverse product range throughout its stores, particularly in clothing, homewares, and groceries.
Poundland revamped its pricing strategy by reintroducing a simplified £1, £2, and £3 price structure for groceries across all UK stores, with the majority of grocery items priced at £1. It discontinued certain categories like frozen foods and some chilled products, along with discontinuing its online platform. The company is reintroducing its in-house Pep&Co clothing line to UK and Ireland stores, with 90% of items priced below £10. Additionally, Poundland will launch a national advertising campaign next week to showcase the value of its product offerings.