Poundland: 11 stores to get stay of execution in closure programme

The embattled discount chain, which was sold by Polish conglomerate Pepco earlier in the year, is now in the hands of investment firm Gordon Brothers, which also owns Laura Ashley. It was sold to Peach Bidco, a subsidiary of Gordon Brothers, for £1 in June.

Earlier in the year the new owners announced changes to its strategy, which included stripping back food products to not stock frozen food, ending its Perks reward scheme, and reducing the number of stores it runs.

While it says the end aim is still to have a network of between 650 and 700 shops, down from 800, it has decided that, after closing 57 stores - with the final batch due to shut their doors on September 28 - there will be 11 that will stay open. As leases expire, more shops will close in a more gradual way.

Among the stores to stay open are those in the Irvine Rivergate Centre that had been due to close permanently on Sunday, September 14 but has now reopened 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 reached an interim agreement with the landlord there.

When the store closures were announced, it also revealed plans to close distribution centres at Darton in South Yorkshire and Bilston in the West Midlands, saying as it is cutting back on food lines it needs a smaller logistics operation.

Another aspect of the new owners’ changes is simplifying prices. Poundland says that it has now brought in £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 by the end of the month.

By the end of September, about 60 per cent of grocery items will be £1, 20 per cent will be £2, and 20 per cent at £3 - Poundland added that this will be “without the need for an account, data, membership or vouchers”.

It says 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).

Poundland’s website now no longer takes online orders, and is for browsing only. The Perks app has been retired, although vouchers are valid in stores until January 15 next year.

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.”