The discount retailer this week launched a major stock clearance sell-off with many items for just 10p
Discount chain Poundland is shutting 25 stores in August as the chain hit financial difficulties. It comes as the cut-price chain launched a massive stock sell-off with many items going for 10p.
Pepco Group sold the discount chain for £1 after it had been hit by a sharp downturn in trading in recent years in June. The discount chain, known for primarily selling products for £1, also indicated it will shut dozens more of its UK shops in the coming years under the new ownership.
It currently runs around 800 stores and said it expects to end up with between 650 and 700 stores across the UK and Ireland after the overhaul.
Darren MacDonald, Poundland’s retail director, said: “It is, of course, sincerely regrettable that our recovery plans include any store closures, but sadly that’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.
“While our anticipated network of around 650-700 stores remains a sizeable one, we entirely understand how disappointing it will be for customers when one nearby, closes.
“Nevertheless, we look forward to continuing to welcome them to a nearby Poundland.”It goes without saying that we will work closely with colleagues through a formal consultation process in stores scheduled to close, exploring any suitable alternative roles. That work is underway.”
This week it made a major announcement for customers – and stuck hundreds of items for sale at just 10p. The sale includes significant discounts across categories such as toiletries, children’s toys, and seasonal products.
The discounter, acquired by investment firm Gordon Brothers in June from Pepco Group, is in the midst of implementing a management-led turnaround plan supported by an £80m financing package. The plan aims to simplify the business and sharpen its focus amid challenging trading conditions.
Poundland CEO Barry Williams said: “Although recent trading has been challenging, we have built a turnaround plan with a simplified and more focused Poundland at its heart, as we aim to deliver the amazing value our customers expect.”
While the retailer operates around 800 stores across the UK and Ireland, Gordon Brothers has confirmed plans to reduce the store estate to between 650 and 700 locations, involving closures and renegotiations of rents across hundreds of sites.
This follows reported declines in revenues and footfall over the past year. The current clearance sale is online only, with delivery fees starting at £3.95 and free delivery available for orders over £50. Among the discounted items are party banners priced at 10p, plastic tumblers for 50p, and seasonal decorations for as low as 35p.
Poundland’s new owners have also announced changes to its product offering, including a reduction in frozen and chilled foods, as part of wider efforts to streamline operations and improve profitability.
Mark Newton-Jones, head of Gordon Brothers’ Europe, Middle East and Africa division, said: “We believe Poundland is an essential business to UK consumers and plays an important role on the High Street. We are committed to supporting its turnaround and future success.”
The clearance event is already live, and features steep discounts on hundreds of items, including:
- Party banners – from 10p
- Plastic tumblers – 50p
- Seasonal decorations – as low as 35p
- Toys, toiletries, and homeware – all heavily marked down
In June, Poundland announced that a total of 25 stores will shut their doors for good in August, with closures split across three dates: 10 branches on August 10, followed by 15 more on August 17 and 12 on August 24.
Closing on August 10:
- Ammanford
- Birmingham Fort
- Cardiff Valegate
- Cramlington
- Leicester
- Long Eaton
- Port Glasgow
- Seaham
- Shrewsbury
- Tunbridge Wells
Closing on August 17:
- Bedford
- Bidston Moss
- Broxburn
- Craigavon
- Dartmouth
- East Dulwich
- Falmouth
- Hull St Andrews
- Newtonabbey
- Perth
- Poole
- Sunderland
- Stafford
- Thornaby
- Worcester
Closing on August 24:
- Brigg (Cary Lane)
- Canterbury (Marshwood Close Retail Park)
- Coventry (Hertford Street)
- Newcastle (Killingworth Centre)
- Kings Heath (High Street)
- Peterborough (Orton Gate Shopping Centre)
- Peterlee (Castle Dene Shopping Centre)
- Rainham (Rainham Shopping Centre)
- Salford (Regent Retail Park)
- Sheldon (Coventry Road)
- Wells (High Street)
- Whitechapel, London (Whitechapel Road)