Poundland has issued a major store closures update ahead of multiple shops shutting down next month. Earlier today, the retailer confirmed the completion of its extensive restructuring programme, which resulted in the closure of nearly 150 stores and the loss of approximately 2,200 positions across the business.
The discount chain, which came perilously close to administration last year before securing High Court approval for its turnaround plan in August, now operates 651 sites compared to roughly 800 prior to the reorganisation.
Staff numbers have fallen from 14,200 to around 12,000 following the overhaul. Managing director Barry Williams acknowledged that despite considerable progress, the retailer recognises it still has “much to do” in its recovery efforts.
The restructuring extended beyond shop closures, with two of the company’s four distribution centres shutting down, including one in Darton, South Yorkshire, and another at Springvale in Bilston, West Midlands.
Poundland has made a major store closures update
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GETTY / PAOperations at the customer service centre in Walsall, also in the West Midlands, underwent significant reorganisation as part of the changes. In its Friday update, Poundland confirmed that the era of mass store closures has concluded.
The retailer stated that any future site closures would simply result from routine lease events, which are typical for a company managing such an extensive network of shops.
Christmas trading figures revealed a 2.9 per cent decline in like-for-like underlying sales during the quarter ending December, as the retailer cut prices to return to its discount heritage.
However, comparable store sales measured by volume increased by two per cent over the same period. First-quarter underlying earnings climbed £8.4million to reach £17.3million, meeting company expectations.
Multiple popular brands have left the high street
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GETTYMr Williams said: “While there’s been significant progress as we refocus and re-energise the business with lower prices and a sharper offer, we know we still have much to do.”
The managing director added: “Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.”
The company’s recovery strategy centres on streamlining its pricing approach, with Poundland reintroducing straightforward £1, £2 and £3 price points for groceries across all UK stores, with approximately 60 per cent of grocery products available at the £1 mark.
“That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store in clothing, homewares, as well as our core grocery aisles,” Mr Williams shared.
The retailer is also bringing back its in-house Pep&Co clothing range 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 proposition launches next week.
Research conducted by theCentre of Retail Research predicted that as many as 17,000 shops could close throughout 2025, with 2026 widely forcast to continue this trend.
Among the high street brands that shut down physical locations, alongside Poundland, included New Look, Halifax and Next.
Factors such as increasing business costs, shifts in shopping habits to online, increased competition, and higher taxes are all combining to create one of the toughest retail climates we have seen.
The high street has been hit with store closures in recent months. | PA
Here is a full list of the Poundland stores earmarked for closure in January and February:
January
- Dorchester – January 18
- Plymstock – January 20
- Cameron Toll, Edinburgh – January 20
- Nottingham Eastpoint, Nottinghamshire – January 22
- Bearwood, Smethwick – January 23
- Lymington, Hampshire – January 23
- Christchurch, High Street, Dorset – January 23.
February
- Chichester – February 8
- Feltham – February 8
- Crayford – February 11
- Nottingham, Chilwell – February 13
- Urmston – February 16.