Poundland has closed 149 stores and cut 2,200 jobs as part of a comprehensive turnaround plan aimed at stabilizing its business after a period of heavy losses and falling sales.
The discount retailer said the closures mark the final phase of a restructuring program launched last year after the company fell into loss due to weak trading conditions and an unpopular overhaul of its clothing range.
Poundland was bought by US restructuring specialist Gordon Brothers from Pepco Group for £1 in June last year and has since pledged up to £80m to revive the business.
The rebrand has seen Poundland refocus on its core offering, with around 60 per cent of its range now priced at £1. The retailer is also relaunching its Pep & Co clothing label after sales were hit by a switch to ranges from its former parent company.
Pep & Co’s adult clothing will return to stores later this month, with children’s and baby ranges set to follow in February.
The closures are part of a wider restructuring first announced last June after Poundland posted a pre-tax loss of £51 million in 2024. In addition to store closures, the plan included rent reductions, the closure of distribution centers, the end of online sales, the elimination of its loyalty app Perks and the exit from the frozen and most refrigerated food categories.
Poundland confirmed that its frozen and digital distribution center in Darton, South Yorkshire, and its national distribution center at Springvale in Bilston, West Midlands, are now closed. Two further distribution centers in Wigan and Harlow remain operational.
Despite the upheaval, the company reported signs of improvement. Underlying profits more than doubled to £17.3 million in the three months to December 28 compared to the same period last year. The number of items sold rose 2 percent, although like-for-like sales at established stores fell 2.9 percent, even after removing categories no longer sold.
Founded in 1990 with its first store in Burton upon Trent, Poundland has struggled in recent years with rising tariffs, energy and staff costs, as well as strong competition from rivals such as The Range, B&M, Savers and low-cost online platforms such as Temu and Shein.
The discount sector has already experienced significant consolidation. Wilko collapsed in 2023 and its brand was later acquired by The Range, while Poundstretcher was purchased by Fortress, owner of Majestic Wine, in 2024. Poundworld closed its 350 stores in 2018, and Poundland had already acquired competitor 99p Stores in 2015.
Poundland chief executive Barry Williams said the store closure program was now complete and early signs suggested the turnaround was gaining momentum.
“We have clear signs from the work we have done so far that we are on the right track,” he said. “While there has been significant progress in refocusing and reinvigorating the business with lower prices and a sharper offering, we know we still have work to do.”
Williams said customers wanted a simpler offering that provided clear value. “That’s why our focus in 2026 will be on delivering the kind of ranges and price convenience our customers want across the store – from clothing and homewares to our central grocery shelves,” he added.
Gordon Brothers said the planned £80 million investment would support Poundland’s recovery as it looks to restore profitability in an increasingly competitive discount retail market.
