Poundland's restructuring plan is taking shape as the retailer continues its effort to turn itself around. Following a challenging trading period and significant losses, the company has announced that it will be closing 149 stores, resulting in the loss of 2,200 jobs.
In an attempt to refocus on its core strengths, Poundland has prioritized its £1 items, with 60% of its stock now priced at this level. The retailer is also relaunching its Pep & Co clothing brand, which was previously impacted by a switch to ranges supplied by its former parent group.
The company's underlying profits have more than doubled in the three months leading up to December 28, reaching £17.3m compared to the same period last year. However, sales at established stores have fallen 2.9%, even excluding categories no longer sold.
As part of its restructuring plan, Poundland will be shutting its frozen and digital distribution centres in Darton and Springvale, respectively, although two other distribution centres in Wigan and Harlow will continue to operate. The company has also ditched its Perks loyalty app and is no longer offering frozen and most chilled foods.
Poundland's founder, Barry Williams, believes that the retailer is on the right track, citing "clear indications" from the work completed so far. However, he acknowledges that a sustainable turnaround cannot be based solely on cost management, stating that customers have indicated they want a simpler offer with lower prices and sharper promotions across all product categories.
To support this strategy, Poundland's new owner Gordon Brothers has announced an investment of up to £80m in the business. The company's long-term goal is to deliver "amazing value" and simplify its offering to meet customer demands, particularly in the clothing and homewares sectors.
In an attempt to refocus on its core strengths, Poundland has prioritized its £1 items, with 60% of its stock now priced at this level. The retailer is also relaunching its Pep & Co clothing brand, which was previously impacted by a switch to ranges supplied by its former parent group.
The company's underlying profits have more than doubled in the three months leading up to December 28, reaching £17.3m compared to the same period last year. However, sales at established stores have fallen 2.9%, even excluding categories no longer sold.
As part of its restructuring plan, Poundland will be shutting its frozen and digital distribution centres in Darton and Springvale, respectively, although two other distribution centres in Wigan and Harlow will continue to operate. The company has also ditched its Perks loyalty app and is no longer offering frozen and most chilled foods.
Poundland's founder, Barry Williams, believes that the retailer is on the right track, citing "clear indications" from the work completed so far. However, he acknowledges that a sustainable turnaround cannot be based solely on cost management, stating that customers have indicated they want a simpler offer with lower prices and sharper promotions across all product categories.
To support this strategy, Poundland's new owner Gordon Brothers has announced an investment of up to £80m in the business. The company's long-term goal is to deliver "amazing value" and simplify its offering to meet customer demands, particularly in the clothing and homewares sectors.
I'm like totally shocked by the news that Poundland is closing 149 stores and laying off 2,200 people... like what's going on with their business plan? They're trying to focus on their £1 items and revamp Pep & Co, but it seems they're still struggling. I mean, I get it, the market can be tough, but it feels like they're just cutting costs without addressing the real issues 
. What's up with ditching their Perks loyalty app too? That was a great idea! 
And £80m from Gordon Brothers is a big investment, hope they can turn things around soon 
. and oh yeah, gordon brothers investing up to £80m? that's some serious cash 
. hope they can deliver on their promise of "amazing value" or whatever 
. what do u guys think? should poundland stick to their £1 plan or try something new? 
. They should've thought of that before making all those changes to their business model. I mean, who wants to shop at a store thats just gonna change prices all the time? Its not like customers actually want to spend more money 
but on the bright side, they're focusing on what really matters - £1 items 
and pep & co is back in the game 
so fingers crossed for poundland's future 
I know it's not their thing but still, you'd think they could at least try to make some decent frozen pizzas. anyway, the new owner Gordon Brothers bringing in an investment of up to £80m is a big deal 
. Cutting costs and focusing on its strengths (like £1 items) might just be the ticket. But what about the people who are losing their jobs? 
It's not just about numbers; it's about the families, the livelihoods... 
. Wishing them all the best for their next chapter 
. I mean, can you really turn around your business by just focusing on £1 items? It feels a bit superficial to me. And what about the people who are losing their jobs? That's gotta be tough 
.
But seriously, it's interesting to see how they're trying to refocus on their core strengths with that £1 item pricing and revamping the Pep & Co brand. 60% of stock priced at £1 is crazy! 
That's gotta be a big hit to their operations. On the bright side, I guess it's good that they're ditching that Perks app 
their profits just doubled or wut and now they're focusin on the £1 items and Pep & Co clothes thats a solid move if u ask me 
but idk about ditchin the Perks app 
anyway, Gordon Brothers investin £80m or wut is comin in handy 
... some good news for customers? More £1 items means more affordable options 
, but 149 stores closing is not exactly uplifting 
. Less Perks loyalty app? More focus on simplicity and price cuts seems like a solid strategy 
... fingers crossed it works out for them 
but i gotta give them props for doubling their underlying profits to £17.3m 
and i'm all for simplifying the store offer with lower prices and sharper promos 
now let's see how this £80m investment from gordon brothers pays off 
I don't get why they're getting rid of the Perks loyalty app either 
seems like they'd still have some demand for those.
At least they're trying to refocus on their core strengths, like those £1 items - who doesn't love buying stuff for just one quid?! 
And they're reviving Pep & Co clothing brand, that's cool! 
! It's like, a new beginning for them, right? And hey, the company is prioritizing its £1 items - that's just clever business 
. Plus, Gordon Brothers throwing in £80m is super generous 
it's about time they simplified their offer to match what customers really want, cheaper prices and more promotions