Poundland, which has 800 sites across the UK, has shut 13 shops in three months in a movve that will be regarded as the latest hammerblow to the high street.
The variety store chain has become a popular place among many bargain-hunting Brits but those in search of cheaper alternatives could be in for a shock.
Pepco, the Polish parent company behind Poundland, recently revealed it has shut 13 of their sites across the UK.
The retailer endured a difficult to end to 2024, with revenue falling 9.3% in the three months to December 31.
Bosses at the bargain retail group have blamed the site closings on its clothing sales but insisted they would work to Poundland “back on track”.
Pepco Group CEO Stephan Borchert said: The group delivered a mixed performance in its first quarter.
“Poundland saw like-for-likes fall, largely driven by continued underperformance in clothing and general merchandise following the transition to Pepco-source products.
“Getting Poundland back on track is a key priority – we are undertaking a comprehensive assessment of the business and taking immediate measures on improving cash performance and strengthening the customer proposition.”
Borchert was appointed on 1 October 2024 and described the situation at Poundland as being “challenging”.
According to The Grocer, Poundland owner Pepco Group posted a £557 million (€662m) net loss for 2024.
As for Poundland increasing its site numbers, Borchert added this was unlikely.
Instead, the budget retailer will focus on improving sales over the current financial year.
Earlier this week, Poundland announced it would increase the number of items which cost £1 or less from around 1,500 to almost 2,400.
The first pilot Poundland shop first opened in December 1990 in the Octagon Centre in Burton upon Trent.
The store proved to be a huge hit managing an impressive turnover of £13,000 on its first day of trading from 624 products.
Last December, Pepco announced it was facing “a higher cost outlook in the UK following the recent Budget” by Labour Chancellor Rachel Reeves.
Profits tumbled by £641million with bosses blaming the poor sales amid a bleak outlook thanks to measures set out by Reeves.
