Poundland takes drastic action at 13 UK stores in brutal blow to shoppers
Pepco, the Polish parent company behind Poundland, recently revealed it has shut 13 of their sites across the UK as the Cost of Living crisis continues.
Poundland has shuttered 13 stores in three months in a massive blow to the high street. Pepco, the Polish parent company behind Poundland, recently revealed it has shut 13 of their sites across the UK as the Cost of Living crisis continues.
It went on to say that Poundland would not increase its store numbers over the current financial year as it focuses on improving sales. Pepco won't confirm the locations of each store which has shuttered - but has been approached for a full list.
Stephan Borchert, chief executive officer of Pepco Group, 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 product."
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He added: “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.”
It came as the bargain retail group announced its trading results for the three months leading to December 31, with revenue sliding by 9.3% at Poundland. According to The Grocer, Poundland owner Pepco Group posted a £557 million (€662m) net loss for 2024.
A Pepco Group spokesperson said: “This was due to a non-cash impairment at Poundland related to the acquisition of the UK chain in 2016.” In the period, the group opened 95 stores and closed 32, 13 of which were Poundland shops.
In a statement, the owner of Poundland said it remains “confident that Pepco will deliver profitable growth during the year, driven by further operational improvements and enhancement of the core customer proposition, supported by a continuing strong gross margin position”.
Borchert said: “The opening of our 5,000th store is a landmark moment for Pepco Group, highlighting the potential we have to further leverage our estate by enhancing our product offer with a compelling price proposition to delight customers and drive a stronger performance.
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