Poundland has shut 149 stores and cut 2,200 jobs as part of a major restructuring aimed at stabilising the discount retailer after years of losses and falling sales. The closures mark the final stage of a plan launched last year following a £51 million pre-tax loss in 2024, which was blamed on weak trading conditions and unpopular changes to the company’s clothing ranges.
The retailer was acquired for £1 by US restructuring firm Gordon Brothers in June last year after being sold by Pepco Group. Gordon Brothers has pledged up to £80 million to revive the business. As part of its reset, Poundland is refocusing on its core offer, with around 60 per cent of its products now priced at £1.
Poundland is also relaunching its Pep & Co clothing brand, which had seen sales decline after a switch to ranges supplied by its former parent company. Adult clothing will return to stores by the end of January, while children’s and baby ranges are expected in February.
The closures are part of a broader shake-up that began last June. Measures included rent reductions, shutting distribution centres, ending online sales, scrapping the Perks loyalty app, and withdrawing from frozen and most chilled food categories. Poundland confirmed that its frozen and digital distribution centre in Darton, South Yorkshire, and its national distribution centre in Bilston, West Midlands, have now closed. Two other centres in Wigan and Harlow remain open.
Despite the upheaval, Poundland has reported early signs of improvement. Underlying profits more than doubled to £17.3 million in the three months ending 28 December compared with the same period a year earlier. The total number of items sold rose 2 per cent, although like-for-like sales at existing stores fell 2.9 per cent, excluding discontinued categories.
Founded in 1990 in Burton upon Trent, Poundland has faced rising business rates, energy and staffing costs, and competition from rivals including The Range, B&M, Savers, and online platforms such as Temu and Shein. The discount sector has seen significant consolidation in recent years, with Wilko collapsing in 2023, Poundstretcher acquired by Fortress in 2024, and Poundworld closing all 350 stores in 2018. Poundland itself acquired 99p Stores in 2015.
Barry Williams, Poundland’s managing director, said the store closure programme was complete and early results suggested the turnaround was gaining momentum. “We have clear indications from the work we’ve already done that we’re on the right track,” he said. He added that customers want a simpler shopping experience with clear value, and the company’s focus in 2026 will be on providing a sharper offer across clothing, homewares, and core grocery products.
Gordon Brothers said its planned £80 million investment would support Poundland’s recovery as it seeks to rebuild profitability in a highly competitive discount market.
