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 now operates 651 stores, down from approximately 800, with its workforce reduced from 14,200 to around 12,000 employees.
As part of the overhaul, Poundland shut down two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands. The company was acquired for £1 by investment firm Gordon Brothers in June last year, avoiding administration after receiving approval for its rescue strategy, which included store closures, in the High Court 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 store closures would be due to standard business lease events common for retailers with a large store network.
Despite experiencing a 2.9% decline in like-for-like sales in the quarter ending December 28, Poundland reported a 2% increase in comparable store sales by volume after implementing price reductions to reinforce its discount positioning. Earnings in the first quarter rose to £17.3 million from £8.4 million, aligning with expectations.
Barry Williams, Poundland’s managing director, acknowledged the progress made in refocusing the business through cost reduction but highlighted the ongoing need to enhance product offerings and pricing simplicity to meet customer preferences across all store categories.
Poundland revamped its pricing strategy by reintroducing £1, £2, and £3 pricing for grocery items in all UK stores, with the majority of grocery products priced at £1. The company also discontinued certain categories, such as frozen foods and some chilled products, and ceased its online operations.
In an effort to attract customers, Poundland is reintroducing its in-house designed Pep&Co clothing line in UK and Ireland stores, with 90% of items priced below £10. Additionally, the company plans to launch a nationwide advertising campaign next week to showcase the value of its product ranges.