In a major overhaul, the discount retailer Poundland has announced the completion of a significant restructuring plan that saw the closure of nearly 150 stores and the loss of 2,200 jobs. The troubled chain, which secured High Court approval for its restructuring last August, now operates 651 stores, a substantial reduction from the approximately 800 stores it had prior to the overhaul.
The extensive revamp also involved the closure of two of Poundland’s four warehouses, located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands. Additionally, the company’s customer service centre in Walsall, West Midlands, underwent a reorganisation.
Despite the large-scale store closures, Poundland has stated that any future closures will be a consequence of standard business-as-usual lease events expected for a retailer with a large store network.
The company’s Christmas trading figures revealed a 2.9% drop in like-for-like underlying sales for the quarter ending 28 December. This decline was attributed to Poundland’s strategy of slashing prices to return to its core discount roots, a move that saw comparable store sales by volume lift by 2%.
Poundland’s managing director, Barry Williams, acknowledged that while there has been significant progress in refocusing and re-energising the business with lower prices and a sharper offer, the company still has much to do. He emphasised that the focus on cost management alone is not enough for a sustainable turnaround, and the company’s priority in 2026 will be on delivering the range and price simplicity that customers want across the stores, including in clothing and homeware, as well as the core grocery aisles.
Poundland was sold for £1 to investment firm Gordon Brothers in June last year, narrowly avoiding administration after a restructuring plan was approved in the High Court in August, just days before the company was due to run out of money.
The recovery efforts since have focused on simplifying the business, including cutting stores and overhauling the pricing structure. The company has also removed some categories, such as frozen foods and some chilled ranges, and has ditched its online offering. Poundland is now returning to a simple £1, £2, and £3 grocery pricing across all its UK stores, with around 60% of grocery items priced at £1.
The group is also relaunching its in-house designed Pep&Co clothing line in its UK and Ireland stores, with 90% of items priced below £10 to be available from next week. Additionally, the company is launching a nationwide advertising campaign to highlight the everyday value of its range.
