Poundland is shutting three stores this month as it announces new closure
Poundland has announced another store closure. The budget retailer is shutting its Copdock Mill Interchange site in Ipswich on May 20.
The discount chain said the store was closing after it was unable to agree new terms with the site owner. Shoppers have been reacting to the news on social media, with one person saying: "Best one in town."
A spokesperson for Poundland said: "Our Copdock Mill store will close on 20 May as we've been unable to agree terms that would allow us to keep trading there.
"We'd like to thank customers for their continued support – we look forward to welcoming them to our store at the Sailmakers centre in Ipswich."
James Cartlidge, South Suffolk MP, told East Anglian Daily Times: "I'm always sorry to hear about shops closing locally but Rachel Reeves has introduced huge taxes on businesses, and has talked down our economy which has unfortunately led to these kind of closures."
Sadly, this isn't the only Poundland store that will be pulling down the shutters over the next few weeks. Its Brackla, Wales, store will close on May 24, and its Chiswick High Road branch will shut for good on May 28.
It comes after the discount chain shut its Clapham Poundland branch in London on May 2, while its Liverpool Belle Valle shopping centre store closed on May 6, followed by its store in St George's Centre in Gateshead, Kent, which pulled down the shutters on May 8.
It comes after Poundland put itself up for sale and hired advisory firm Teneo to oversee the process. A spokesman for Pepco Group confirmed the news to The Mirror. Poundland has more than 800 branches in the UK.
They said: 'As stated at our capital markets day on March 6, we are actively exploring separation options, including a potential sale, for the Poundland business. We have started to work with advisers to support us with this process.'
Sources separately told The Telegraph that a number of Poundland stores could be closed if the chain is sold. Pepco warned underlying earnings will come in at between €50million and €70million (£41.9 million and £58.6 million) down from €153million in 2023/24.
The company blamed a 'challenging' UK retail landscape, along with changes announced in the Budget, including higher National Insurance contributions for employers and an increase in the minimum wage.
The earnings threshold for when employers start paying National Insurance will also be lowered from £9,100 per year to £5,000. At the same time, minimum wage will rise by 6.7%.
For someone aged 21 and over, minimum wage will rise from £11.44 an hour to £12.21 an hour, while those aged 18 to 20 will see their rate rise from £8.60 an hour to £10 an hour.
If you're under 18 or you're an apprentice, minimum wage is rising from £6.40 an hour to £7.55 an hour.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
5 minutes ago
- The Independent
Interest rates cut to 4% as UK inflation picks up
UK interest rates have been cut to their lowest level since March 2023, despite the Bank of England predicting a sharp rise in inflation amid accelerating food prices. The central bank chose to reduce interest rates to 4% from 4.25%, pointing towards a recent fall in wage inflation and reduced uncertainty over the impact of US tariffs. The cut came after the Bank's nine-person rate-setting committee was forced to take a second vote for the first time in its history. The Bank's Monetary Policy Committee (MPC) initially saw four of its committee vote for the 0.25 percentage point reduction, four vote to keep rates at 4.25% and one, Alan Taylor, vote for a 0.5 percentage point cut. Governor Andrew Bailey then led a second vote, when Mr Taylor gave his backing for a cut to 4%, providing a majority of five to four. Mr Bailey said: 'We've cut interest rates today, but it was a finely balanced decision. 'Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully.' Lower interest rates will be welcomed by Chancellor Rachel Reeves, and the move is likely to reduce the Government debt payment costs. It comes after warnings from the NIESR think tank that the Chancellor may need to find a further £40 billion through tax rises or spending cuts in her autumn Budget in order to balance the state finances. Firms were already hit by significant tax and wage cost increases in April after Ms Reeves' first Budget. In its fresh report, the Bank of England warned that UK businesses said increased national insurance contribution payments and uncertainty caused by the tax rise have 'weighed on growth'. Nevertheless, the Bank raised its economic growth forecast for this year, predicting that GDP (gross domestic product) will grow by 1.25% in 2025, up from its previous estimate of 1%. It comes despite latest figures from the Office for National Statistics showing that the economy contracted in both April and May. Bank officials indicated that the economy is still likely to have grown by 0.1% over the second quarter, and predicted this will pick up further through the year amid hopes that reduced interest rates will encourage spending. Meanwhile, inflation is expected to accelerate in the coming months, putting more pressure on household budgets. Consumer price index (CPI) inflation is now on track to peak at 4% in September, surpassing previous guidance that it would peak at 3.5%. The increased cost of living is largely being driven by higher energy and food prices, according to the Bank. Food prices have jumped in recent months, with the cost of beef, chocolate and coffee all accelerating. The inflation reading for September could also be influential as it is typically used to decide how much benefits increase the following year and is also one aspect of the pension triple lock. The triple lock means that pensions will rise by the highest of the September inflation reading, wage inflation for the month, or 2.5%. Inflation will remain higher than previously expected for the next two years. The Bank said inflation is now on track to drop down to the 2% target rate set by the Government in 2027. On Thursday, the Bank also said it now had increased clarity over the potential impact of US President Donald Trump's tariff regime compared with its previous report in May. It said tariffs will now drag down UK economic growth by 0.2 percentage points, down from 0.3, after the Government's trade agreement with the US.
Daily Mail
6 minutes ago
- Daily Mail
Inside the unusual and historic Bank of England vote decision: JESSICA CLARK saw the three-way deadlock unfold...
The Bank of England has cut interest rates but warned that Rachel Reeves's tax raid on businesses has pushed up food prices for British households. For the first time in the Bank's history, policymakers had to vote twice on how fast to slash borrowing costs amid a three-way deadlock. In a boost to mortgage holders, Threadneedle Street economists cut rates by 0.25 percentage points to 4 per cent after an unprecedented second vote. But inflation is forecast to hit 4 per cent later this year – higher than the Bank's previous expectations and its 2 per cent target - casting doubt on pace of future reductions. BoE governor Andrew Bailey today cautioned that subsequent rate cuts must be done 'gradually and carefully'. The warning came as the Bank's Monetary Policy Committee (MPC) said rising prices are being driven in part by the Chancellor's National Insurance Contributions (NICs) hike and inflation-busting minimum wage increase. Reeves's policies have fuelled spiralling grocery bills, with food inflation expected to peak at 5.5 per cent this year after hitting 4.5 per cent in June. Stubborn inflation increased uncertainty over the pace of future interest rate cuts after the Bank's nine-person MPC was trapped in a three-way split on today's decision. Four members including Bailey voted to cut borrowing costs by 0.25 percentage points to 4 per cent, while four wanted to hold rates at 4.25 per cent. Just one member, Alan Taylor, voted to cut rates faster, by 0.5 percentage points to 3.75 per cent. For the historic second poll, Taylor backed a 0.25 percentage point cut to break the deadlock. That meant the final decision was a 5-4 split in favour of setting rates at 4 per cent. Bailey said: 'We've cut interest rates today but it was a finely balanced decision. 'Interest rates are still on a downward path but any future rate cuts will need to be made gradually and carefully.' The Bank's Monetary Policy report, which was published alongside the rates decision, said that 'domestic labour costs are currently an important driver of food price inflation'. 'That is in part because a relatively high proportion of staff in these sectors are paid at or close to the National Living wage, which increased by 6.7 per cent in April,' it said. 'Furthermore, overall labour costs of supermarkets are likely to have been disproportionally affected by the lower threshold at which employers start paying NICs in part because a relatively high proportion of supermarket staff is employed part time.' Who is Alan Taylor? Professor Alan Taylor is an economist and currently Professor of International and Public Affairs at Columbia University. He has served as a senior advisor at Morgan Stanley, PIMCO and McKinsey. He is a research associate of the National Bureau of Economic Research and is a research fellow of the Centre for Economic Policy Research. He is also visiting scholar at the Bank of England. He has published papers in leading academic journals in the fields of macroeconomics, international economics, finance and economic history. Born in Wakefield, Professor Alan Taylor graduated from King's College, Cambridge, before receiving his PhD in Economics from Harvard University. Last month, he said: 'In the near term I see stronger disinflationary forces building up over the rest of this year, and then in the medium term I see a need to reach for a lower neutral level over the course of 2026 and 2027 should we be able to normalize smoothly. 'For those two reasons, I was persuaded to not only vote for a lower level of bank rate now but also to signal the need to be on a lower path over the year to come.' Higher employment costs have added 1 to 2 per cent to food prices so far, and a new packaging tax later this year is expected to pile further pressure on supermarkets. Some products including coffee, chocolate and beef have also increased in price due to weather conditions. Shoppers have already tried to reduce their supermarket spending by buying own-brand products, cheaper cuts of meat and larger value packs, the report said. And grocers reported strong sales of 'premium ready meals' as Britons held back on eating out at restaurants in a bid to save money. As well as hiking prices, businesses were trying to save money by cutting staffing levels including making redundancies and imposing hiring freezes, the report found. And they warned that Angela Raynor's workers' rights bill was adding to their uncertainty. 'To reduce the need for higher prices, many firms along the supply chain were trying to mitigate cost increases, including through reductions in headcount,' the report said. Bosses were looking towards automation, artificial intelligence and offshoring jobs as a solution to higher UK employment costs.
Daily Record
32 minutes ago
- Daily Record
Interest rates cut brings relief to homeowners and borrowers across UK
Interest rates are now at their lowest level in two years. The Bank of England has cut interest rates from 4.25% to 4%, bringing relief to householders with mortgages. Initially, four of the nine-person committee wanted rates to be reduced by 0.25 percentage points to 4% while four wanted to keep rates unchanged, and one member preferred a bigger 0.5 percentage point cut. A second vote was held to secure a majority, which resulted in the Bank's Monetary Policy Committee voting by five to four to cut rates to 4%. Governor Andrew Bailey said it was a 'finely balanced decision', adding: 'Interest rates are still on a downward path, but any future rate cuts will need to be made gradually and carefully.' Chancellor Rachel Reeves said: 'Since the general election, interest rates have been cut five times and are now at their lowest level for two years – bringing down the cost of mortgages and loans across the UK. 'By bringing stability back to the country's finances, we're putting more money in people 's pockets.' Shadow chancellor Mel Stride said: 'Rachel Reeves claims credit for interest rate cuts – but rates are coming down to support the weak economy she has created. "Inflation has almost doubled on her watch and unemployment is rising. 'Interest rates should be falling faster, but Labour's jobs tax and reckless borrowing have pushed inflation well above target. 'With economists warning Labour have created a £50 billion black hole and the Chancellor refusing to rule out further harmful tax rises, Labour are showing they don't understand the economy. Meanwhile, UK inflation will be higher than previously expected over the next few years, while economic growth will be stronger in 2025, according to new forecasts from the Bank of England. Consumer Prices Index (CPI) inflation is projected to peak at 4% in September, up from a previous estimate of 3.5% as the impact of higher food and energy prices take effect. CPI is set to average at 2.5% in 2026 and 2% in 2027, up from a respective 2% and 1.75% when the Bank last set out its forecasts in May. Gross domestic product (GDP) is expected to rise by 1.25% over 2025, up from the 1% it previously projected.
