Poundland has closed 149 stores and cut 2,200 jobs as part of a wider turnaround plan aimed at stabilizing the business after a period of heavy losses and declining sales.
The discount retailer said the closures mark the final phase of a restructuring program launched last year, which it blamed on weak trading conditions and an unpopular overhaul of its clothing line.
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 offer, 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 changes to the ranges supplied by its former parent company.
Adult Pep & Co clothing will be back in stores later this month, with children's and baby clothing arriving in February.
The closure was first announced last June after Poundland reported a pre-tax loss of £51m in 2024. Along with store closures, the plan included rent reductions, closing distribution centers, the end of online sales, scrapping its Perks loyalty app, and withdrawal from frozen and most chilled food categories.
Poundland confirmed that its frozen and digital distribution center in Darton, South Yorkshire, and its national distribution center in Springwell in Bilston, West Midlands, have now closed. Two other distribution centers are operational in Wigan and Harlow.
Despite the turmoil, the company has shown signs of improvement. Underlying profits more than doubled to £17.3 million in the three months to December 28 compared with the same period a year earlier. The number of items sold increased 2 percent, although like-for-like sales at established stores declined 2.9 percent, even after removing categories that are no longer sold.
Established 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 Teemu and Shein.
The discount sector has already seen significant consolidation. Wilko collapsed in 2023, with its brands later acquired by The Range, while Poundstretcher was purchased by Majestic Wines owner Fortress in 2024. Poundworld closed 350 of its stores in 2018, and Poundland had previously acquired rival 99p stores in 2015.
Poundland managing director Barry Williams said the program of store closures has now been completed and early signs suggest the turnaround is taking hold.
“The work we've already done gives us clear signals that we're on the right track,” he said. “While significant progress has been made as we have refocused and reenergized the business with lower prices and better offers, we know we still have much more to do.”
Williams said customers wanted a simple proposition that provided clear value. “That's why our focus in 2026 will be on delivering the kind of range and price simplicity our customers want in stores – from clothing and home goods to our core grocery aisles,” he said.
Gordon Brothers said its planned £80 million investment would aid Poundland's recovery as it looks to rebuild profitability in an increasingly competitive discount retail market.
jamie young
Jamie is a senior reporter at Business Matters, with over a decade of experience in UK SME business reporting. Jamie has a degree in Business Administration and regularly attends industry conferences and workshops. When Jamie is not reporting on the latest business developments, he is passionate about mentoring budding journalists and entrepreneurs to inspire the next generation of business leaders.