Poundland Closes 149 Stores
Poundland has undergone a major restructuring that included the closure of 149 stores and the loss of 2,200 jobs as the discount retailer focuses on restoring profitability. The company has doubled down on its core £1 pricing model, with 60% of its products now set at this level, and has relaunched its Pep & Co clothing line after past sourcing changes negatively impacted sales.
The retailer, which was acquired for £1 in June 2024 by US restructuring specialist Gordon Brothers, reported underlying profits of £17.3m for the three months to 28 December — more than double the figure recorded a year earlier. However, like-for-like sales declined by 2.9%, despite a 2% increase in unit volumes.
The restructuring plan, first announced in mid-2024 after Poundland posted a £51m pre-tax loss, included shutting underperforming stores, abandoning online sales, discontinuing frozen and most chilled food, and shutting two distribution centres. Sites in Darton and Springvale were closed, while centres in Wigan and Harlow remain operational.
The challenging trading period comes amid rising energy, staffing and business rate costs, as well as growing competition from discount chains such as The Range, B&M, Home Bargains and Savers, alongside online rivals Temu and Shein. The discount retail sector has already seen consolidation following Wilko’s collapse in 2023 and the closure of Poundworld in 2018.
Managing director Barry Williams said the heavy restructuring phase had concluded and that the business now had a platform for future growth. He emphasised that customer demand for simplicity and strong value would shape the company’s strategy in 2026, with sharper pricing across clothing, homeware and grocery ranges. Gordon Brothers has pledged up to £80m in investment to support Poundland’s turnaround.
