Poundland recently completed its restructuring program, resulting in the closure of almost 150 stores and the elimination of 2,200 jobs. The company now operates 651 stores, down from approximately 800, and its workforce has been reduced from 14,200 to around 12,000 employees. Additionally, Poundland shut down two warehouses located in Darton, South Yorkshire, and Springvale in Bilston, West Midlands, as part of its restructuring efforts.
Acquired by investment firm Gordon Brothers for a nominal fee in June last year, Poundland successfully avoided administration by securing approval for its rescue plan, which included store closures, in the High Court in August. The company confirmed the completion of its restructuring program but emphasized the need for further steps to regain stability.
In a statement, Poundland mentioned that any future closures would be part of routine business lease events expected in a retail network of its size. Recent Poundland figures indicated a 2.9% decrease in like-for-like underlying sales for the quarter ending on December 28. Despite price reductions to align with its discount model, comparable store sales by volume increased by 2%.
The company reported underlying earnings of £17.3 million in its first quarter, representing a rise of £8.4 million, meeting its projected targets. Poundland’s Managing Director, Barry Williams, acknowledged the progress made in reinvigorating the business with lower prices but stressed the need for continued efforts to enhance product ranges and pricing simplicity based on customer preferences.
Poundland revamped its pricing strategy, reverting to straightforward grocery pricing of £1, £2, and £3 across all UK stores, with the majority of grocery items priced at £1. Changes also included the removal of certain categories like frozen foods and some chilled ranges, as well as discontinuing its online services. The company is set to reintroduce its in-house designed Pep&Co clothing in UK and Ireland stores, with a focus on affordability, and will launch a nationwide advertising campaign to highlight the value of its product range.