Poundland Provides Progress Update on Recovery Plan

• Restructure store closure programme comes to an end
• Revamped PEP&CO clothing ranges with 90 per cent of items below £10 available from next week
• New ad campaign launching next week to highlight competitive prices centred around Poundland’s iconic £1
• New partnership launched with Retail Trust to support colleagues

Poundland today [23rd January] provided a progress update on its recovery plan to get its business back on track which will include the re-introduction of in-house designed PEP&CO clothing to its UK & Ireland stores and the end of its restructuring-related store closure programme.

And with 60 per cent of its grocery items now at £1, it also plans next week to begin a new nationwide advertising campaign to highlight the everyday value of its ranges, that doesn’t rely on tricks or gimmicks like loyalty cards or yo-yo promotions.

Trading Progress

Progress from fundamental changes at Poundland is already visible.

In Q1 of FY26, ending 28 December 2025, Poundland delivered an EBITDA of £17.3m, in line with the budget shared with its suppliers in September and £8.4m ahead of Q1 last year.

Poundland also delivered an additional £10m in cost savings over and above the initiatives already embedded into its Q1 budget.

Over a quarter in which Poundland refocused its grocery aisles on a simpler, proposition at lower prices led by its iconic £1, there’s already clear evidence of customers’ reacting positively to the recent changes.

Overall, like-for-like unit volume sales growth was 9.0 per cent across its revamped FMCG ranges with 2.0 per cent like-for-like unit growth for the wider business.

Increased unit volume sales in FMCG, combined with the significant lowering of prices saw overall re-adjusted like-for-like sales of (2.9) per cent in the quarter, which excludes the impact of categories removed such as extended chilled and frozen foods and transactional online sales.

Restructuring Progress

Poundland has made significant progress since the approval of its restructuring plan by the high court in August 2025, including bringing its store consolidation programme to a close.

• The right store locations - Poundland has closed unprofitable stores, ending 2025 with 651 locations, compared to c800 prior to reorganisation, in the range forecast at the beginning of the restructuring plan1.
  
  Any future closures will be a consequence of standard business-as-usual lease events expected at a retailer with a large store network.
  
  
• A simpler and better value customer proposition - Poundland has delivered a simpler in-store offer, removing frozen food and simplifying its chilled food ranges, giving its stores a new look with overhauled grocery aisles.
  
  Following the changes, around 60 per cent of items are at its iconic £1 price point, driving volume growth particularly in confectionery, snacking and soft drinks.
  
  Poundland has also completed the transition of its transactional website to a brand shop window and retired its digital app.
  
  
• A re-organisation in support of a simpler business – Poundland has consolidated its distribution network around its DCs in Wigan and Harlow, closing centres in Darton and Springvale in Bilston.
  
  It has also created a simpler organisation with lower central costs.
  
  Through the consolidation of its store and distribution networks, and re-organisation at its Walsall customer service centre in support of a simpler business, Poundland has reduced overall headcount from 14,200 to around 12,000 on 28 December 2025.

Poundland managing director Barry Williams

“While there’s been significant progress as we re-focus and re-energise the business with lower prices and a sharper offer, we know we still have much to do.

“Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.

“That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store - in clothing, homewares as well as our core grocery aisles.

“They’ve told us loud and clear they want a simpler, more focused Poundland that keeps its promise of amazing value.

“We have clear indications from the work we’ve already done, that we’re on the right track.

“That progress is very much down to the hard work of our colleagues in challenging circumstances. I want to thank them for helping us achieve so much in the last few months.

“We will continue to do all we can to support them.”

Marketing Campaign

With around 60 per cent of all the grocery items now at £1, Poundland will next week begin a new nationwide marketing campaign to tell customers about the changes.

The campaign, covering out-of-home media, digital, social and radio will highlight Poundland’s straightforward every day value that doesn’t rely on deceptive loyalty schemes, special promotions or other here-today, gone-tomorrow price gimmicks.

PEP&CO Clothing

From next week, all Poundland’s UK and Ireland stores will begin the transition to PEP&CO clothing ranges that have been designed and bought by its own in-house team based in Watford2.

By the end of January, excluding clearance sales, all adult clothing will have reverted to its former PEP&CO branding with new kids’ and baby ranges in place by the end of February at lower prices.

Ninety per cent of the new PEP&CO clothing ranges will be below £10.00 with 45 per cent below £5.00, reflecting the same simple pricing philosophy Poundland’s already successfully re-introducing in its grocery aisles.

The new PEP&CO ranges will also include a greater depth of womenswear and the re-introduction of size ranges demanded by British customers, marking the return of ranges lost during the transition to Pepco-sourced products.

This includes new womenswear ranges from size eight to 22 and a 50 per cent increases to 18 bra sizes from 34A to 40E - including DD.

What’s more unlike many other retailers, women’s bras will be available at the same price regardless of the cup size.

Also landing in stores in time for half term is extensive licensed 100 per cent cotton kids wear featuring up-to-date Minnie Mouse, Stitch and Spiderman designs.

Its re-established team at its clothing centre in Watford includes ex-PEP&CO clothing trading director Maria Epaminondas who’s leading a buying team alongside former PEP&CO colleagues Antonia Quinn and Amy Beaumont and new buyers Lesley Robinson and Daina Oosterwyk.

Support for Colleagues

This week Poundland has briefed its colleagues on a new partnership it’s put in place with leading support charity the Retail Trust to support the wellbeing of its people.

The Retail Trust provides a 24-hour helpline, counselling sessions, critical incident support, financial aid, supported living and digital self-help services to those working in retail.

Under the new partnership, those services are being made available, free-of-charge to Poundland’s colleagues.

After Easter, Poundland will extend the new pricing and range simplicity it launched in its grocery and clothing aisles to its general merchandise offer, offering fewer price points and more focused ranges where customers can more easily see the value offered.

1 Under the terms of the court-sanctioned restructuring plan, in addition to the 68 unprofitable stores Poundland originally identified for closure, impacted landlords were given the right to serve 30 days’ notice on leases by the end of November 2025. Most landlords did not do so.

2 In 2017 Poundland began selling clothing in its stores under the PEP&CO brand, with ranges designed and sourced by a dedicated UK fashion team based in Watford.
Between 2017 and 2023, PEP&CO helped Poundland grow to become a top 20 UK clothing retailer by volume. In 2023, Poundland began replacing its clothing ranges with products sourced through its then-owner Pepco which already operated over 4,000 clothing and homeware stores across Europe.

Under new ownership, Poundland has now re-established its own clothing team to source and design PEP&CO apparel for its UK & Irish stores.

Source : Poundland

Image : Poundland

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