The discount retailer Poundland has declared its period of widespread store closures complete, with the chain now operating from 651 locations following a restructuring programme that saw nearly 150 sites close and more than 2,000 jobs lost.
The company, which narrowly avoided administration last year before securing High Court approval for a turnaround plan in August, previously ran approximately 800 shops. Staff numbers have reduced from 14,200 to around 12,000.
Two of Poundland’s four distribution centres were also shut as part of the overhaul, including facilities in Darton, South Yorkshire, and Springvale in Bilston, West Midlands. The customer service centre in Walsall underwent significant reorganisation.
In a Friday update, the retailer confirmed that any future closures would stem only from routine lease events typical for a business managing an extensive property portfolio.
Managing director Barry Williams said the company had made significant progress but acknowledged there remained “much to do” in its recovery. He noted that focusing on costs had provided a platform for growth, though he cautioned that no sustainable turnaround could rely on cost management alone.
Christmas trading figures showed underlying like-for-like sales fell 2.9 per cent in the quarter to December as the retailer reduced prices to return to its discount heritage. Volume-based comparable store sales, however, rose two per cent. First-quarter underlying earnings increased by £8.4 million to £17.3 million.
The recovery strategy centres on simplified pricing, with £1, £2 and £3 price points reintroduced for groceries across all UK stores. Approximately 60 per cent of grocery products are now available at the £1 level.
The in-house Pep&Co clothing range returns to UK and Ireland stores from next week, with 90 per cent of items priced under £10. A nationwide advertising campaign promoting the chain’s value offering also launches next week.
A final tranche of closures is scheduled for the coming weeks, with stores in locations including Chichester, Feltham, Crayford and Urmston due to shut in February.
