Poundland has confirmed that it will be shuttering 37 of its stores in August as part of its new owners’ recovery strategy for the struggling discounter.
They are among the 68 stores that have initially been earmarked for closure in the restructuring plan drawn up by investment firm Gordon Brothers after it acquired the retailer from Pepco Group for a nominal sum in June. The plan also includes closing two distribution centres, seeking rent reductions at other stores, discontinuing its online operations, and reducing its food offerings. More shops are also expected to be shut over time.
Of the 37 announced today, Poundland will close 10 for good on 10th August, 15 on 17th August, and 12 on 24th August. They include stores in Ammanford, Bedford, Bidston Moss, Birmingham Fort, Brigg, Broxburn, Canterbury, Cardiff Valegate, Coventry, Craigavon, Cramlington, Dartmouth, East Dulwich, Falmouth, Hull St Andrews, Kings Heath, Leicester, Long Eaton, Newcastle, Newtonabbey, Perth, Peterborough, Peterlee, Poole, Port Glasgow, Rainham, Salford, Seaham, Sheldon, Shrewsbury, Stafford, Sunderland, Thornaby, and Tunbridge Wells.
Poundland’s Retail Director, Darren MacDonald, said: “It is, of course, sincerely regrettable that our recovery plans include any store closures, but sadly that’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.
“While our anticipated network of around 650-700 stores remains a sizeable one, we entirely understand how disappointing it will be for customers when one nearby, closes. Nevertheless, we look forward to continuing to welcome them to a nearby Poundland.”
A recent trading update from Pepco Group revealed that Poundland’s revenues plummeted 10.3% to €347m in the quarter to 30 June, with like-for-likes falling 7.1%. During the period, the Poundland estate shrank from 818 stores to 799.
NAM Implications:
- Poundland has to be cut to fit available demand, as a basis for recovery and growth.
- i.e. there is no alternative.
- Hopefully all stakeholders will share that view…
