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, with its workforce reduced 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 part of the company’s overhaul.
Last year, Poundland was acquired for £1 by investment firm Gordon Brothers, averting administration after its rescue strategy, which included store closures, was sanctioned by the High Court in August. The retailer has confirmed the completion of its restructuring program but cautioned that there is still work to be done to regain stability.
Future closures, if any, will be due to routine lease events common for retailers with a large store network, Poundland stated. Recent data from Poundland shows a 2.9% decline in like-for-like sales for the quarter ending December 28, attributed to price cuts to reinforce its discount image. However, comparable store sales by volume increased by 2%.
In the first quarter, underlying earnings at Poundland rose to £17.3 million, up by £8.4 million as anticipated. Managing director Barry Williams emphasized the need for continued efforts to enhance the business, focusing on delivering preferred ranges and competitive pricing across all departments.
To streamline its operations, Poundland reintroduced £1, £2, and £3 pricing for groceries in all UK stores, with the majority of grocery items priced at £1. The company also discontinued certain product categories, such as frozen foods and select chilled ranges, and discontinued its online services. Poundland is reintroducing its in-house designed Pep&Co clothing line to UK and Ireland stores, offering 90% of items under £10 starting next week. A nationwide advertising campaign will also be launched next week to emphasize the value of its product ranges.