Poundland ends store closures in major survival reset: What to know about the new £1 pricing
Poundland ends major store closures
Discount retailer Poundland has confirmed that large-scale store closures are now over, drawing a line under one of the most dramatic restructurings on the UK high street in recent years.
The announcement follows the closure of 149 stores and the loss of 2,200 jobs, part of an emergency overhaul designed to rescue the business after it slipped into heavy losses amid rising costs and fierce competition.
Company bosses say the retailer is now focused on stability, simpler pricing and rebuilding customer trust, signalling a shift from crisis management to cautious recovery.
Nearly 150 Stores Shut as Poundland Restructures
Poundland’s restructuring was first announced in June 2025, after the company plunged to a £51m pre-tax loss. At the time, the business warned it could run out of money within months unless drastic action was taken.
Under the plan, Poundland:
- Shut 149 stores
- Cut 2,200 jobs
- Closed two distribution centres in Darton (South Yorkshire) and Bilston (West Midlands)
- Reduced its workforce from 14,200 to about 12,000
- Ended online sales
- Dropped frozen and most chilled food ranges
- Axed its Perks loyalty app
The company now operates 651 stores, down from around 800 before the overhaul.
Poundland Bosses Say Closures Are Now Finished
Speaking after the latest trading update, Poundland confirmed that no further mass closures are planned.
“Any future closures will be a consequence of standard business-as-usual lease events,” the retailer said, stressing that the wave of emergency shutdowns has ended.
Managing director Barry Williams said the business is now “on the right track”, though he acknowledged there is still “much to do” to fully secure Poundland’s future on UK high streets.
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Return to £1 Pricing at the Heart of Recovery Plan
Central to Poundland’s reset is a return to price simplicity, after shoppers complained the chain had drifted away from its discount roots.
The company said:
- 60% of all stock is now priced at £1
- Almost two-thirds of grocery items cost £1
- A simplified £1, £2 and £3 pricing structure is being rolled out nationwide
Williams said customers want “a simpler offer that keeps its promise of amazing value”, adding that the focus in 2026 will be on clear pricing across groceries, clothing and homewares.
Pep & Co Clothing Brand Makes a Comeback
Poundland is also relaunching its Pep & Co clothing brand after an earlier switch to ranges supplied by its former parent group dented sales.
- Adult clothing returns to stores by the end of January
- Children’s and baby ranges arrive in February
The retailer hopes the refreshed clothing offer will help drive footfall while restoring trust among budget-conscious shoppers.
Profits Rise Despite Falling Like-for-Like Sales
Despite store closures, Poundland’s underlying earnings more than doubled to £17.3m in the three months to 28 December.
However, challenges remain:
- Like-for-like sales fell 2.9%
- Sales volumes rose 2%, boosted by price cuts
- Competition remains intense from B&M, The Range, Savers, supermarkets, and online rivals like Temu and Shein
The figures underline a fragile recovery in a discount sector already reshaped by the collapse of Wilko and earlier failures such as Poundworld.
New Owner Gordon Brothers Backs Turnaround
Poundland was sold for £1 to US restructuring specialist Gordon Brothers in June 2025, days before it faced possible administration.
The firm has committed to investing up to £80m to support the turnaround, focusing on:
- Cost control
- Fewer but stronger stores
- Clearer value messaging
Industry analysts say Poundland’s survival will depend on whether it can win back shoppers during the cost-of-living crisis, when competition for bargain hunters has never been fiercer.
FAQ
Is Poundland still closing stores?
No. Poundland says large-scale store closures are over, with only routine lease-related closures expected in future.
How many Poundland stores have closed?
A total of 149 stores were shut during the restructuring.
How many jobs were lost at Poundland?
About 2,200 jobs were cut, reducing the workforce to around 12,000.
Why did Poundland close so many stores?
Rising costs, falling sales, unpopular product ranges and intense competition pushed the retailer into heavy losses.
Who owns Poundland now?
Poundland is owned by Gordon Brothers, which bought the business for £1 in 2025.
Is Poundland returning to £1 prices?
Yes. About 60% of stock and nearly two-thirds of groceries are now priced at £1.
Is Poundland making a profit again?
Underlying profits rose to £17.3m in the latest quarter, though sales remain under pressure.
Will Poundland survive on the UK high street?
Executives say the business is stabilising, but long-term survival depends on restoring customer confidence and competing with rival discounters.