Poundland has confirmed that it will stop selling goods online and shut down its loyalty app on 16th September as part of its new owners’ recovery strategy for the struggling discounter.
The company is currently in the process of closing 68 of its 800 stores as part of the restructuring programme being implemented by investment firm Gordon Brothers that acquired the retailer from Pepco Group for a nominal sum in June. The plans also include closing two distribution centres, seeking rent reductions at other stores, and reducing its food range, as well as discontinuing its e-commerce operations and retiring the Perks loyalty scheme in order to simplify the business.
A statement recently published on Poundland’s Perks loyalty app and website says: “From the 16th September, our website will be for browsing only and Poundland Perks will be closing – but you’ll still be able to use your vouchers.
“We’re currently working very hard behind the scenes to simplify and refocus our stores. And that means very soon there’ll be even more ranges at £1 and new items to choose from each week, but unfortunately, we will no longer be providing an online delivery service from the 16th September 2025.
It added: “As we work hard to simplify and refocus Poundland, delivering the absolute best value to every one of our customers in our stores, we’ll be retiring our Perks app. But don’t worry, any reward vouchers that you’ve already earned will stay in the app, and you’ll be able to redeem them in-store until the 15th January 2026.
“This means that we’ll focus on having the best prices, for everyone, in all of our stores – no need for an account, data, membership or vouchers. Just amazing value every day.”
In recent weeks, Poundland has been publishing the locations of stores that will be closing. However, it remains tied to leases on closed sites until its restructuring plan receives approval from the High Court and creditors at a hearing scheduled for 26th August.
The retailer has stated that it anticipates further closures over time as leases expire, with its estate eventually shrinking from approximately 800 to between 650 and 700
Gordon Brothers has agreed to invest £80m in its turnaround plan for Poundland, which is being led by its Managing Director, Barry Williams, who returned to the business earlier this year. 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%.
NAM Implications:
- Simplification of the business…
- ..by ‘cutting to fit available, profitable demand’.
- (whilst coping with the fact that a 2025 £1 is no longer the £1 it was on Poundland launch day in 1990)
- Fingers crossed…
