Discount retailer Poundland has announced the completion of a significant cost-cutting initiative that has seen the closure of nearly 150 stores and the loss of 2,200 staff positions. The company's managing director, Barry Williams, stated that while progress has been made, there is still "much to do" to ensure a sustainable turnaround for the business.
Restructuring Plan Approved by High Court
The major overhaul was set in motion after Poundland received approval from the High Court last year to reduce its store portfolio from 800 to 651 locations. As part of this restructuring, the company also closed two of its four UK warehouses, located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands.
Simplified Pricing and Refined Offerings
In efforts to salvage the business, Poundland has implemented several strategic changes. The retailer has refined its product offerings, discontinuing ranges such as frozen foods, and reverted to a simpler price structure. Currently, 60 per cent of grocery items are priced at £1, with the remaining products set at either £2 or £3.
From next week, Poundland will relaunch its in-house clothing line, Pep&Co, with 90 per cent of items priced at £10 or less. This move is part of a broader strategy to attract customers with competitive pricing across various categories.
Future Focus on Growth and Customer Needs
Barry Williams emphasised that cost management alone cannot drive a sustainable turnaround. He outlined the company's focus for 2026, stating, "Our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store – in clothing, homewares, as well as our core grocery aisles."
Poundland was sold to Gordon Brothers last June for £1 and faced administration in August before securing approval for its restructuring plan amid cash flow warnings.
Full List of Poundland Store Closures
The following stores are the last to close as part of the restructuring plans:
- Bristol Avon Meads
- Gosport Winton
- Chichester
- Coatbridge
- Feltham
- Crayford
- Nottingham, Chilwell
- Urmston
- Twickenham
- Westhoughton
- Market Harborough
- Lowestoft
- Colne
- Rochdale
- Leicester
- Tenby
- Blackpool – Cherry Tree Retail Park
- Deal
- Thurrock
- Walsall
- Hailsham
- Perry Barr
- Matlock
- Carlisle
- Burnley
- Witham
- Sidcup
- Dalston
- Beeston
- Launceston
- Melton Mowbray
- Droitwich
- Hempstead Valley
- Bexhill
- Cameron Toll
Broader High Street Challenges
Poundland is not alone in reducing its high street presence. Several other brands, including WHSmith, Wilko, Claire's, Morrisons, Homebase, New Look, Select, Dobbies Garden Centre, Bodycare, Hobby Craft, NatWest, and Santander, have also closed stores in the past year, reflecting ongoing challenges in the retail sector.
The company has indicated that any future closures will result from standard business-as-usual lease events, typical for a retailer with a large store network.
