Days after Poundland was acquired by Gordon Brothers, it has been revealed that the struggling discounter will be closing at least 68 of its nearly 800 stores as part of a turnaround plan to revive its fortunes.
Distribution centres in Darton, South Yorkshire and Bilston, West Midlands, have also been earmarked for closure in early 2026, with delivery volumes set to be absorbed into its other sites in Wigan and Harlow.
In addition, Poundland is seeking rent reductions from landlords, which, together with lease expiries, could result in as many as 80 more store closures in the future. It is anticipated that its estate will end up at around 650-700 stores.
Meanwhile, the chain will stop selling frozen food and reduce its chilled food offer to focus on its £3 meal deal and essential groceries such as milk. It also plans to bring back ranges lost during the transition to Pepco-sourced products, such as seasonal general merchandise and other popular categories.
Poundland’s website will stop taking online orders and instead switch to browsing only and advertising. And the chain’s app-based Perks loyalty scheme, which was only rolled out last year, will be retired so the retailer can focus on in-store offers.
The restructuring programme still requires approval by a court. Impacted creditors have been contacted to inform them of the plan, and a court timetable is expected to conclude in late summer.
Barry Williams, its current Managing Director, who returned to the business earlier this year, commented: “It’s no secret that we have much work to do to get Poundland back on track.
“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.
“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.
“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”
Last week, Gordon Brothers, which specialises in acquiring distressed assets, pledged to invest up to £80m to help fuel a turnaround of the once fast-growing discounter.
NAM Implications:
- So, back to physical stores, and less of them…
- Landlords’ willingness to accept lower rents will determine the future of the lower-profit stores…
- …until the revised retail business model finds a level where acceptable profit levels are generated.
- So, suppliers that can and are willing to go this route…
- …probably have a future with Poundland…
- …with fingers crossed!
