Poundland Ends Store Closure Programme as Turnaround Takes Hold

Poundland on Jan. 23, 2026 confirmed that its store-restructuring plan was complete, effectively ending the wave of cuts that began in mid-2025. The discount chain – now owned by US turnaround firm Gordon Brothers – said its “large-scale” shop closure campaign has finished. In its update, Poundland noted it ended 2025 with 651 stores (down from ~800 pre-restructure) and about 12,000 staff (from 14,200). Any further closures will be “standard business-as-usual” lease expiries, not part of a special restructuring programme.

Background – Why Closures Began

The closures began after Poundland ran into trouble in 2024. That year the chain reportedly plunged to a £51 million pre-tax loss amid weak clothing sales and rising costs. In June 2025 Pepco Group (Poundland’s former owner) sold the UK business to Gordon Brothers for £1, triggering an emergency turnaround. Gordon Brothers immediately backed a Company Voluntary Arrangement (CVA) to cut rents and allowed the chain to shed unprofitable shops. At the time, Poundland announced plans to shut 68 initially, with up to 80 more over time. Managing Director Barry Williams said in June 2025 that it was “sincerely regrettable” to close stores and warehouses, but necessary “to secure the future of thousands of jobs and hundreds of stores”.

In total, Poundland closed nearly 150 shops and axed about 2,200 jobs during the restructure. Two of its four distribution centres (in Darton, South Yorkshire and Bilston, West Midlands) were shuttered and online sales were ended, as the chain exited underperforming frozen and chilled food ranges. By the end of 2025, Poundland’s estate was trimmed to roughly 650–700 stores – in line with the target range announced last summer. (For context, Poundland had operated ~800 UK/Ireland outlets before 2025, and at one point employed 16,000 people.)

Closure Programme Completed

In its January 2026 statement, Poundland made clear the shutdown phase was over. The retailer said it had finished “the sweeping restructure” that closed nearly 150 stores and cut 2,200 jobs. As the Express & Star and other outlets reported, “the large-scale shop closures were over”. Any future closures, the company said, would “be a consequence of standard business-as-usual lease events,” as is normal for a large retail chain.

Poundland’s financial update also showed early signs of recovery. In the Christmas quarter to Dec. 28, underlying profits more than doubled to about £17.3 million year-on-year, even as like-for-like sales dipped 2.9% on lower prices. The volume of items sold was up 2%, suggesting stronger customer interest in Poundland’s restored value offer. First-quarter FY2026 EBITDA was reported at £17.3m (ahead of last year) and roughly £10m in cost savings was delivered above target.

Management Comments and Strategy Shift

Poundland’s MD Barry Williams used the update to stress that while the “significant progress” had been made, the turnaround is not complete. He said the retailer is “on the right track” but admitted “we still have much to do” to rebuild the business. “Our focus on costs has… given us a platform for future growth, but no sustainable turnaround can be based on cost management alone,” he noted. Williams added that the business is refocusing on its core value promise: delivering simple prices and ranges. He explained that shoppers want a “simpler, more focused Poundland” with “amazing value,” so for 2026 the company will emphasize straightforward £1, £2 and £3 pricing and sharper product lines across groceries, homewares and clothing.

As part of this strategy, Poundland is reintroducing its own Pep&Co clothing brand to all UK stores, with 90% of the range under £10. It has also dropped loyalty apps and online shopping to concentrate on in-store value. An advertising campaign highlighting Poundland’s low prices is set to launch imminently, aiming to remind customers of the chain’s “everyday value”. Gordon Brothers – the restructuring investor – has committed up to £80 million of additional funding to support Poundland’s revival.

Future Outlook

Analysts say Poundland’s turnaround comes amid a tough UK retail backdrop. Industry group Centre for Retail Research warned that over 17,000 shops could close in 2025 due to competition, costs and online shopping. Against this trend, Poundland’s announcement marks a rare case of stabilization. By ending its closure programme, the chain is now focused on growth and customer appeal. Going forward, the company will be closely watched on whether its return to “back-to-basics” discounting pays off. Williams stressed that future success will depend on product ranges and pricing, not further cuts, as Poundland works to restore confidence in its brand and viability.

Sources: Reputable UK media reports and company statements.