Poundland has completed its major restructure that closed nearly 150 shops and cut 2,200 jobs. But the discount retailer warned Friday it still has "much to do" to secure a full recovery.
The troubled chain ended last year with 651 stores, down from around 800 before the reorganisation began. Its workforce shrank from 14,200 to about 12,000 as the company fought to avoid collapse.
Managing director Barry 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.»
Performance and strategy
Like-for-like sales dropped 2.9% in the quarter to December 28, though sales volume rose 2%. Underlying earnings climbed £8.4 million to £17.3 million in the first quarter.
Poundland is returning to its discount roots with £1, £2, and £3 pricing across all UK shops. Around 60% of grocery items now cost £1. The chain also cut chilled and frozen foods and shut its online offering.
Williams explained the company's approach: «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.»
From crisis to turnaround
Investment firm Gordon Brothers purchased Poundland for just £1 in June last year. The retailer narrowly avoided administration after the High Court approved its restructuring plan in August, days before it was projected to run out of funds.
Any future closures will result from «standard business-as-usual lease events expected at a retailer with a large store network,» the company said.
Williams outlined the 2026 focus: «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.»
Note: This article was created with Artificial Intelligence (AI).
