Poundland is shaking up a key part of its stores as the discount retailer faces another wave of closures. The retailer which has become a staple across high streets in the UK has alerted customers of major change it is making to its clothing ranges.
Poundland will start developing its clothing range in-house again. The move from the Black Country retailer means there will be a bigger womenswear selection and more seasonal clothing. A spokesperson told Drapers the business previously operated a “successful clothing business” managed by an internal team before it started sourcing through its previous owner Pepco.
“We intend to revert to that model after restructuring, with clothing ranges developed in-house for the UK and Ireland markets,” they said. The deal struck between Gordon Brothers and Pepco has meant £80million of financing will be pumped into the business.
The new owner has proposed shutting 68 stores and negotiating rent reductions at a number of other locations as well as getting rid of frozen food products at all stores where they’re currently sold.
However the restructuring will need to first be approved by the High Court.
The new owner has proposed:
- Closing 68 stores and negotiating rent reductions at a number of other locations
- Getting rid of frozen food products at all stores where they’re currently sold
- Reducing the number of chilled food items sold
- Closing Poundland’s frozen and digital distribution centre in Darton, South Yorkshire, later this year
- Closing its national distribution centre in Bilston, West Midlands, in early 2026
- No longer selling products on its website
Providing more womenswear and seasonal ranges
This month a total of 38 branches will close as part of the restructuring plan.
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.”
