Poundland has announced the closure of nearly 150 stores and the elimination of 2,200 positions as part of its restructuring initiative. The discount retailer now operates 651 stores, down from approximately 800, with its workforce reduced from 14,200 to about 12,000.
In addition to the store closures, Poundland shut down two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands, as part of its restructuring efforts.
Last year, Poundland was acquired by investment firm Gordon Brothers for a nominal fee of £1. The company’s rescue plan, which included store closures, was approved by the High Court in August, preventing it from entering administration.
Poundland has confirmed the completion of its restructuring program but noted that there is still work to be done to regain stability. The company stated that any future closures would be a result of standard business lease events that are typical for a retailer with a large store network.
Recent data from Poundland revealed a 2.9% decline in like-for-like underlying sales for the quarter ending on December 28. Despite reducing prices to align with its discount strategy, the company reported a 2% increase in comparable store sales by volume.
The company’s underlying earnings in the first quarter rose to £17.3 million, an increase of £8.4 million, meeting its expectations. Poundland’s managing director, Barry Williams, acknowledged the progress made in refocusing the business with lower prices but emphasized the ongoing work required for sustainable growth.
Looking ahead, Poundland aims to focus on delivering the product ranges and pricing simplicity desired by customers throughout its stores. The company has reintroduced a pricing structure of £1, £2, and £3 for grocery items across all UK outlets, with a majority of grocery products priced at £1.
Poundland has discontinued certain categories, such as frozen foods and some chilled ranges, and ceased its online operations. The retailer 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 nationwide advertising campaign next week to emphasize the value offered by its product ranges.