Poundland Ends Store Closures And Unveils New Strategy

Poundland, one of the UK’s most recognizable discount retailers, has entered a new era after confirming the completion of a sweeping restructuring plan that saw the closure of 149 stores and the loss of 2,200 jobs. The company, which began its turnaround in 2025 after a period of mounting losses and declining sales, now says the large-scale closures are over and its focus is firmly on delivering value and simplicity to customers across its remaining 651 stores.

The transformation comes after a turbulent stretch for the retailer. According to The Times, Poundland posted a £51 million pre-tax loss in 2024, a blow attributed to weak trading conditions and an unpopular overhaul of its clothing ranges. The company’s woes were compounded by rising business rates, soaring energy and staffing costs, and fierce competition from rivals such as B&M, The Range, and online newcomers like Temu and Shein.

In June 2025, the business was sold for just £1 by its previous owner, Pepco Group, to US restructuring specialist Gordon Brothers. The new owners pledged up to £80 million to revive Poundland, staving off administration after securing High Court approval for a court-sanctioned restructuring plan in August 2025. The plan involved not only the closure of unprofitable stores but also the withdrawal from frozen and most chilled food categories, the shuttering of its online sales operation, and the retirement of its Perks loyalty app. Distribution centres in Darton, South Yorkshire, and Springvale, Bilston, were closed, consolidating the logistics network around Wigan and Harlow.

"Any future closures will be a consequence of standard business-as-usual lease events expected at a retailer with a large store network," Poundland said in a statement reported by Express. The company’s workforce, which once stood at 14,200, now numbers around 12,000.

Despite the upheaval, there are encouraging signs. In the three months to December 28, 2025, underlying profits more than doubled to £17.3 million compared to the previous year, as reported by Retail Gazette. The number of items sold rose by 2%, although like-for-like sales at established stores fell by 2.9% after removing discontinued categories. Poundland’s leadership remains cautiously optimistic. Managing director Barry Williams stated, “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.” He emphasized that the company’s focus on cost management “has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.”

The heart of Poundland’s revival is a return to its discount roots. Around 60% of its grocery items are now priced at the iconic £1 point, a move that is “driving volume growth, particularly in confectionery, snacking and soft drinks,” according to the company’s latest update. The pricing overhaul, which followed a five-month pilot in 17 West Midlands stores, has simplified the store’s offer, with most items now priced at £1, £2, or £3. This back-to-basics approach is designed to eliminate “additional price complexity” and appeal to customers’ desire for “amazing value,” as Williams put it.

The clothing department, long a source of both revenue and controversy, is also undergoing a transformation. Poundland is relaunching its in-house designed Pep&Co clothing label, with adult ranges returning to stores by the end of January 2026 and children’s and baby lines following in February. Ninety percent of the new Pep&Co clothing ranges will be priced below £10, with 45% under £5. The women’s collection has been expanded, now spanning sizes 8 to 22, and bra sizes have increased by 50%, ranging from 34A to 40E—including DD—with all bras priced the same, regardless of cup size. “Unlike many other retailers, women’s bras will be available at the same price regardless of the cup size,” Poundland highlighted in a statement.

To support the relaunch, a new nationwide advertising campaign will roll out from the last week of January 2026, aiming to “highlight the everyday value” of Poundland’s ranges, with a particular focus on the £1 price point. The company has also revamped its website and retired its digital app, underscoring its commitment to simplicity and value rather than short-term promotions or loyalty schemes.

The restructuring plan, which received High Court approval in August 2025, gave landlords the option to serve 30 days’ notice on leases by the end of November 2025. According to Birmingham Mail, most landlords opted not to do so, meaning the majority of the closures have already taken place. The company’s management has praised the hard work of its remaining colleagues during this challenging period. Williams noted, “That progress is very much down to the hard work of our colleagues in challenging circumstances. I want to thank them for helping us achieve so much in the last few months. We will continue to do all we can to support them.”

Beyond cost-cutting and product streamlining, Poundland is also investing in colleague wellbeing. The company announced a new partnership with the Retail Trust, offering staff free access to services such as counselling, financial aid, and a 24-hour helpline, according to Retail Gazette.

Poundland’s journey is emblematic of the wider turbulence in the UK discount retail sector. The past few years have seen major shake-ups, with Wilko collapsing in 2023 and its brand later acquired by The Range, Poundstretcher being bought by Fortress (owner of Majestic Wine) in 2024, and Poundworld shutting all its stores back in 2018. Even Poundland itself acquired rival 99p Stores in 2015, highlighting the sector’s constant churn and consolidation.

Founded in 1990 in Burton upon Trent, Poundland’s story has always been about adaptation. The recent overhaul—though painful—marks a decisive shift back to what made the brand popular in the first place: clear value, simple pricing, and accessible ranges. As the dust settles, the company is betting that these changes, coupled with a sharper focus on what customers want, will help it regain momentum in an increasingly competitive market.

The coming months will be crucial. With the large-scale closures now in the rearview mirror and a renewed focus on value, simplicity, and customer-driven product ranges, Poundland is aiming to prove that even in a tough retail climate, there’s still a future for the high street discounter that made the £1 price tag famous.