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Emma Simpson & Faarea Masud, BBC News
To revitalize its business, budget chain Poundland has announced the closure of 68 stores, putting over 1,000 jobs at risk. The closure will include a distribution centre in Darton, South Yorkshire, and the national distribution centre in Bilston, West Midlands. In addition to store closures, Poundland is also looking to renegotiate rents with landlords, which could lead to an additional 70 closures in the future. The company, which currently operates 792 stores in the UK and Ireland and has approximately 16,000 employees, was recently sold to US investment firm Gordon Brothers for just one pound.
The restructuring plan put forth by Poundland still needs court approval. Managing director Barry Williams acknowledged that the road ahead will be challenging but necessary for the company’s future success. While the closures are regrettable, Williams emphasized that they are crucial to protecting thousands of jobs and ensuring the longevity of the chain. Despite serving over 20 million shoppers annually, Poundland’s recent performance has fallen below expectations, prompting the need for immediate action to facilitate growth.
As part of its turnaround strategy, Poundland will discontinue selling frozen food and instead focus on its £3 meal deal and essential groceries like milk. The company also announced the cessation of online orders on its website poundland.co.uk, shifting its focus towards browsing and promoting deals. Furthermore, Poundland plans to enhance its clothing section with a wider selection of womenswear, reintroduce popular seasonal merchandise, and bring back previously beloved product categories. The former owner of Poundland, Pepco, revealed that it sold the brand for a nominal fee to Gordon Brothers, citing sales struggles and the added pressure of increased National Insurance contributions as contributing factors to the decision
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