Poundland has closed 149 stores and cut 2,200 jobs as part of a sweeping turnaround plan aimed at stabilising the business after a period of heavy losses and declining sales.
The discount retailer said the closures mark the final phase of a restructuring programme launched last year, following a collapse into the red that was blamed on weak trading conditions and an unpopular overhaul of its clothing ranges.
Poundland was bought for £1 from Pepco Group in June last year by US restructuring specialist Gordon Brothers, which has since pledged up to £80 million to revive the business.
As part of the reset, Poundland has refocused on its core proposition, with around 60 per cent of its range now priced at £1. The retailer is also relaunching its Pep & Co clothing label after sales were hit by a switch to ranges supplied by its former parent company.
Adult Pep & Co clothing will return to stores by the end of this month, with children’s and baby ranges due to follow in February.
The closures form part of a wider shake-up first announced last June after Poundland posted a £51 million pre-tax loss in 2024. Alongside store closures, the plan included rent reductions, the closure of distribution centres, the end of online sales, the scrapping of its Perks loyalty app and the withdrawal 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 at Springvale in Bilston, West Midlands, have now closed. Two other distribution centres, in Wigan and Harlow, remain operational.
Despite the upheaval, the company reported signs of improvement. Underlying profits more than doubled to £17.3 million in the three months to 28 December compared with the same period a year earlier. The number of items sold rose by 2 per cent, although like-for-like sales at established stores fell 2.9 per cent, even after stripping out categories that are no longer sold.
Founded in 1990 with its first store in Burton upon Trent, Poundland has struggled in recent years amid rising business rates, energy and staffing costs, as well as intense competition from rivals including The Range, B&M, Savers and low-cost online platforms such as Temu and Shein.
The discount sector has already seen significant consolidation. Wilko collapsed in 2023, with its brand later acquired by The Range, while Poundstretcher was bought in 2024 by Fortress, owner of Majestic Wine. Poundworld shut its 350 stores in 2018, and Poundland previously acquired rival 99p Stores in 2015.
Barry Williams, managing director of Poundland, said the store closure programme was now complete and that early signs suggested the turnaround was gaining traction.
“We have clear indications from the work we’ve already done that we’re on the right track,” he said. “While there’s been significant progress as we re-focus and re-energise the business with lower prices and a sharper offer, we know we still have much to do.”
Williams said customers wanted a simpler proposition that delivered clear value. “That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want across the store — from clothing and homewares to our core grocery aisles,” he added.
Gordon Brothers said its planned £80 million investment would support Poundland’s recovery as it seeks to rebuild profitability in an increasingly competitive discount retail market.
