Health

Beleaguered discount chain Poundland issues update on its restructuring and recovery programme

By Beverly Rademacher

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Beleaguered discount chain Poundland issues update on its restructuring and recovery programme

It had now completed the roll-out of simple £1, £2 and £3 pricing to whole categories including snacking, ambient drinks, pet food, household, confectionery and health and beauty with chocolate, biscuits and cakes moving over to the new offer by the end of the month.

By the end of the month, around 60 per cent of grocery items will be at £1, 20 per cent will be at £2, and 20 per cent at £3 – offering customers simple value in every store, without the need for an account, data, membership or vouchers.

Examples of new £1 lines across grocery include Fox’s Chocolatey Rounds (130g), Cadburys Mini Fingers (96.5g), Lucozade Sport Orange & Raspberry (500ml), BIC Ladies Razor Aloe Pure (4pk), Wisdom Medium Toothbrush (3pk), Lotus Biscoff (12pk), Wagon Wheels (6+2pk), Domestos Bleach (750ml) and Johnsons Cotton Buds (200pk).

At seasonal moments when customers want extended ranges or bigger packs, items at other simple prices may be available for a limited time.

The update comes as Poundland has completed the simplification of its digital presence, converting Poundland.co.uk from a transactional to a brand website, and the retirement of its Perks app as the business focuses on delivering value in stores for customers.

Customers who have vouchers in the Perks app can still redeem them in store until January 15 2026.

Poundland has also today given an update on its 68-store closure programme, bringing it to a conclusion.

Under the programme, 57 stores have already had their closure dates confirmed with the final six due to close on 28 September 28.

However, 11 closures out of the 68 originally identified have now been put on hold.

There is no change to Poundland’s overall expectation that in time as leases expire, Poundland expects to operate a network of around 650 to 700 stores compared to around 800 at the beginning of its restructure process.

Poundland’s Irvine Rivergate Centre location that had been due to close permanently on September 14 has now re-opened after re-stocking.

Closures planned for October in Brighton (London Road) and Anniesland (Great Western Road) have also been put on hold.

A separate end-of-lease store closure that was due to take place in Whitby has been reversed after Poundland was able to come to an interim agreement with the landlord responsible for that specific location.

Managing director Barry Williams said: “We’re determined to deliver a simpler, more focused Poundland that keeps its promise of amazing value to customers.

“We appreciate the support we’ve had from suppliers, landlords and other partners who’ve now all been fully briefed on our plans to get us back on track.

“While there is much work to do, I’m confident that a Poundland focused on the simple value our customers expect, has a bright future.”

In the coming months Poundland will extend its new pricing simplicity to its general merchandise and clothing ranges, offering fewer price points and more focused ranges that customers can more easily see the value offered.

Walsall-based Poundland has more than a dozen stores across the Black Country where it all began for the company which was founded by entrepreneur Steve Smith and his late father Keith, both from Willenhall, and market trader Dave Dodd.

The first store opened in Burton-On-Trent in December 1990 and the company went on to become one of the most popular on the high street. Like, most high street chains, however, it has suffered since the Covid pandemic from the effects of increased online trading and the cost of living crisis.

The Merry Hill branch closed on July 18 as the company was unable to agree lease terms to continue trading there.

The discount retail chain’s Shrewsbury outlet closed on August 10 and the Newport branch is due to close on September 28. Branches at Birmingham Fort and Erdington also closed in August.

Poundland’s Springvale Distribution Centre at Bilston is also earmarked for closure in early 2026.