Poundland is set to close three stores across the UK in December, marking a difficult year for the retailer. The discount chain was acquired by investment firm Gordon Brothers for just £1 in June, with plans subsequently confirmed to reduce the Poundland network from 800 stores to between 650 and 600.
Dozens of stores have now shut for good across the UK with more closures on the horizon this month. One of Poundland’s biggest challenges in recent times has been its own name. Selling items for £1 no longer works like it once did, as a £1 item in 1990 is now worth the equivalent of 40p after inflation. Other companies, such as OneBeyond, have ditched the £1 model as it undermines the economics of value retailing.
It has been confirmed that the Poundland store in Melton Mowbray will close on Thursday, December 4. Meanwhile, the site in Droitwich will shut on Tuesday, December 9 while the shop in Hempstead Valley will close on Wednesday, December 31.
Looking ahead to January, the Poundland store in Bexhill is scheduled to shut on Monday, January 5. The shop in Cameron Toll will also close for good on Tuesday, January 20.
Like other businesses across the UK, Poundland has been hit by higher national insurance contributions and higher wage bills. They cannot simply increase prices as they risk losing their core customers.
Barry Williams, managing director of Poundland, previously said: “It’s no secret that we have much work to do to get Poundland back on track.
“While Poundland remains a strong brand, serving 20 million-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.
“It’s sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores.
“It goes without saying that if our plans are approved, we will do all we can to support colleagues who will be directly affected by the changes.”
