Poundland and WHSmith will close down 15 stores combined this year, with dozens already gone. Bargain retailer Poundland will close four high street branches, while WHSmith has confirmed 11 closures, with the majority impacting England.
Poundland’s closures are more imminent, with three planned before the end of May, although one store’s final date is not yet confirmed. The latest announcement is for Clapham, London, where the retail giant with more than 900 stores across the UK will close its railway station branch. A Poundland spokesperson said: “We know how disappointing our closure at Clapham Junction will be to customers and we are looking forward to welcoming them to our store nearby at the Southside shopping centre in Wandsworth.”
Poundland’s parent company Pepco enlisted advisory firm Teneo in March to oversee the potential sale of its UK business.
Pepco previously announced it was exploring “all strategic options” to separate Poundland from its portfolio, having warned national insurance contribution hikes and minimum wage increases would significantly impact its bottom line.
Poundland’s profits dropped by £641 million in the year leading up to September, followed by a 9.3% decline in revenue for the three months ending in December.
A spokesperson attributed this to “a non-cash impairment at Poundland that relates to the acquisition of the UK chain in 2016”.
Meanwhile, WHSmith has undergone significant changes as it looks to focus on its more profitable branches in airports and train stations, moving away from the high street.
The company reported a £42 million pretax loss for the six months ending February 28, against a £28 million profit for the prior year.
Even though WHSmith has announced closures, with nine already having closed this year and eleven more scheduled, it has announced plans to open 110 new branches in airports, railway stations and hospitals.
It follows the acquisition of its 480 shops by Modella Capital, which owns Hobbycraft and The Original Factory Shop, in a £76million deal.
