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Daily Record
28-05-2025
- Business
- Daily Record
Major Poundland loyalty scheme change amid closure concerns
It has be predicted that 200 Poundland stores could end up closed as the owner of the discount chain looks for a new buyer. Poundland is known for providing their customers with everyday essentials for low prices. From cleaning products to holiday must-haves, the discount chain is a go-to store for shoppers looking for a bargain. However, with the threat of closure looming, Poundland has now made a major change to their loyalty scheme after listening to customer feedback. The chain will now be scrapping its exclusive lower prices for shoppers who are part of their membership scheme. Shoppers used to be able to get access to cheaper prices on certain products thanks to Poundland Perks, but this major shake-up means this bonus - which is similar to Tesco Clubcard Prices and Sainsbury's Nectar Prices - will become a thing of the past. However, the Mirror reports that shoppers will still be able to collect points on the money that they spend while in store. Loyalty scheme members get one point for every 1p they spend on selected items, and once they reach 5,000 points, they will receive a voucher worth £1. A Poundland spokesperson has said: "We've listened to your feedback and from 21 May 2025, the app will now be changing to points and prizes. "That means we'll be offering all customers our very best pricing on the shelf and online – without having to add Poundland Perks prices found in the app. "Of course, you can continue to earn points as you shop at Poundland in store and online when you scan your Poundland Perks app at checkout – and you'll still be able to play our weekly Win it Wednesday competition to win points and prizes. "Once you've accumulated 5,000 points you'll be able to convert those points to a £1 voucher to redeem In-store and online, by turning the toggle on before the 15th of every month." This shake up to Poundland Perks comes after the owner of the discount chain, Pepco Group, announced that it has decided to sell the chain. Earlier this week in a financial update, the Pepco Group told investors that the company "continues to actively explore separation options for Poundland business with an exit expected by end of FY25". This means that Poundland expects to make and accept a deal by the end of the current financial year. Therefore by September, the parent company hopes the discount chain will be under new command. While it has been reported that there are investment firms and private equity groups interested in buying the business, the Telegraph has also claimed that up to 200 Poundland stores could potentially face closure. Currently, Poundland has over 820 across the UK and Ireland - where it is known as Dealz - and it chain employs more than 16,000 people. Despite the massive size of this discount chain, it was revealed this week that the business' revenues have dropped by 6.5 per cent to €985million (£830million) for the six months to March, in comparison to the year before. Over the period, the brand suffered "challenges across all categories" and had 18 net store closures. It is now predicted that Poundland is due to deliver earnings of between 0 and €20million (£16.9 million) compared with previous guidance of €50million and €70million. By contrast, the wider Pepco Group saw total revenues grow by 4.3% to €3.34billion (£2.82billion) in the half-year. Join the Daily Record WhatsApp community!
Wales Online
28-05-2025
- Business
- Wales Online
Poundland shuts Welsh store and ‘200 more' could soon follow
Poundland shuts Welsh store and '200 more' could soon follow Poundland owner Pepco Group has given an update on the sale of the discount chain, as the firm revealed it has suffered a half-year loss amid a 'challenging' UK retail landscape Poundland is in the process of being sold (generic image) (Image: Getty Images ) A popular shop has closed in Wales and up to 200 more branches across the UK could follow. Poundland at Brackla shopping centre in Bridgend shut on May 24, and is one of several branches to have announced its closure this month. Meanwhile its parent company Pepco Group is in the process of selling the discount chain, which is estimated to be complete by September. In its recent financial briefing Pepco Group disclosed to its shareholders that it is "continues to actively explore separation options for Poundland business with an exit expected by end of FY25". This statement suggests that Poundland is on track to seal a deal by the conclusion of its ongoing financial year, ending in September. Industry rumours hint at several investment firms and private equity groups showing interest in acquiring the retailer. Reportedly, Gordon Brothers, the present owner of Laura Ashley, is leading the race to secure an agreement. The Telegraph last week suggested that the potential rescue sale might involve shuttering up to 200 Poundland shops. Recent disclosures show that Poundland's revenues slipped 6.5% to €985million (£830million) in the first half ending March, a downturn from the previous year, reports the Mirror. Article continues below The brand encountered difficulties across the board, resulting in 18 net store closures during this timeframe. Poundland is now projected to report earnings between 0 and €20million (£16.9million), adjusting down from original projections of €50million to €70million. Pepco Group, based in Poland, experienced a revenue increase of 4.3% totalling €3.34billion (£2.82billion) for the half-year term. Commenting on the situation, Pepco's chief executive Stephan Borchert said: "At Poundland, trading remains challenging, which is reflected in a profit outturn below expectations for H1 and a weaker outlook for the full year." "Barry Williams, who was reappointed as Poundland managing director in March 2025, and his team are actively driving a recovery plan to help turn around the business by refocusing on its traditional core strengths." In an announcement this March, Pepco Group confirmed its intentions to sell Poundland. The company had engaged Alix Partners earlier in the year to conduct a strategic review of the brand. A Pepco Group spokesperson informed The Mirror: "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." The firm attributed the decision to a "challenging" UK retail environment and recent Budget announcements, which included increased National Insurance costs for employers and a rise in the minimum wage. With more 820 outlets and a workforce exceeding 16,000, Poundland operates extensively across the UK and Ireland, where it trades under the name Dealz. This news arrives as Poundland shuts down three more stores. The Brackla shopping centre branch in Wales closed May 24, and will reportedly be followed by the Chiswick High Road store on May 28. Additionally, the discount retailer closed its Copdock Mill Interchange location in Ipswich on May 20, the Mirror reported This came after the closure of its Clapham Poundland branch in London on May 2, followed by the shutting down of its store in Liverpool's Belle Valle shopping centre on May 6. Subsequently, its outlet in St George's Centre in Gateshead, Kent, ceased operations on May 8. Article continues below Get daily breaking news updates on your phone by joining our WhatsApp community here .
Daily Mirror
27-05-2025
- Business
- Daily Mirror
Poundland makes huge change to loyalty scheme 'as 200 stores could close'
It comes after Pepco Group, the owner of Poundland, announced it was going to sell the discount chain - with reports suggesting 200 stores could close Poundland has scrapped its exclusive lower prices for members of its loyalty scheme as part of a major shake-up. Poundland Perks used to allow members access to cheaper prices on certain products. It worked in a similar way to Tesco Clubcard Prices and Sainsbury's Nectar Prices - but the feature has now been axed. Poundland Perks members will still be able to collect points when they spend money in stores. You get one point for every 1p they spend on select products - then once you've built up 5,000 points, you get a voucher worth £1 to spend in Poundland. A spokesperson for Poundland said: 'We've listened to your feedback and from 21 May 2025, the app will now be changing to points and prizes. 'That means we'll be offering all customers our very best pricing on the shelf and online – without having to add Poundland Perks prices found in the app. 'Of course, you can continue to earn points as you shop at Poundland in store and online when you scan your Poundland Perks app at checkout – and you'll still be able to play our weekly Win it Wednesday competition to win points and prizes. 'Once you've accumulated 5,000 points you'll be able to convert those points to a £1 voucher to redeem In-store and online, by turning the toggle on before the 15th of every month.' It comes after Pepco Group, the owner of Poundland, announced it was going to sell the discount chain. In a financial update this week, parent company Pepco Group told investors that the company "continues to actively explore separation options for Poundland business with an exit expected by end of FY25". This indicates that Poundland expects the deal to be done by the end of its current financial year, which closes in September. It has been reported that a number of investment firms and private equity groups are interested in buying the business - but the Telegraph also claims that up to 200 Poundland stores could still face closure. Poundland has more than 820 stores and employs more than 16,000 people across the UK, as well as in Ireland, where it is known as Dealz. It was revealed this week that Poundland revenues dropped by 6.5% to €985million (£830million) for the six months to March, compared with a year earlier. The brand suffered 'challenges across all categories' and had 18 net store closures over the period. Poundland is now due to deliver earnings of between 0 and €20million (£16.9 million) compared with previous guidance of €50million and €70million. The wider Poland-based Pepco Group saw total revenues grow by 4.3% to €3.34billion (£2.82billion) for the half-year.
The Sun
25-05-2025
- Business
- The Sun
Full list of Poundland closures this month as 200 stores at risk
POUNDLAND will have shut six locations by the end of the month - and hundreds more are at risk of closure. The bargain retailer has pulled the plug on five stores in the last couple of weeks. 1 This comes after a further 200 loss-making stores were identified as possible closures. 'As announced at the capital markets day on March 6, Pepco Group is moving away from fast-moving consumer goods to create a simpler business focused on higher-margin clothing and general merchandise and is actively exploring separation options for Poundland, including a potential sale, from the group,' a spokesperson for Poundland's parent company Pepco Group said. You can see the full list of closures this month below: Chiswick, High Road – closing May 28 Copdock Mill Interchange Ipswich, closed May 20. St George's Centre, Gravesend – closed last week Clapham Junction Station, London – closed May 2 Belle Vale Shopping Centre, Liverpool – closed May 6 Brackla, Wales – closed May 24 In March, Poundland was forced to shut its Belfast branch after the Connswater Shopping Centre was placed into receivership. The store closed its doors at the end of March, following a major closing-down sale. Back in October, residents of Maidenhead were similarly dismayed when their local Poundland branch closed. This came in addition to other closures, including its Sutton Coldfield store on October 5 and the Macclesfield branch last August, the latter closing due to the inability to secure a new lease agreement. WHAT IS GOING ON AT POUNDLAND? It follows reports that up to 200 stores could close as part of a rescue deal of the brand. Gordon Brothers, the ex-owner of Laura Ashley, has become the frontrunner to takeover the bargain chain, which recently announced a wave of store closures across the UK. Walkthrough Poundland's first £1million store Turnaround Investors were linked with a bid for Poundland. These firms specialise in buying up struggling businesses in the hopes of turning them around. Bidding for the business was expected to start this Tuesday. A source told The Sunday Times that Poundland would be priced at "effectively a pound." Several interested parties are reportedly looking at bidding on the UK budget retailer. Further store closures and job losses would come as a blow to the high street. Polish retail giant Pepco said it expects the sale of Poundland to complete by September. Last month, the parent firm is said have hired advisory firm Teneo to oversee the sale of the UK business. Poundland revenues dropped by 6.5% to 985 million euros (£830 million) for the six months to March, compared with a year earlier. RETAIL PAIN IN 2025 The British Retail Consortium has predicted that the Treasury's hike to employer NICs will cost the retail sector £2.3billion. Research by the British Chambers of Commerce shows that more than half of companies plan to raise prices by early April. A survey of more than 4,800 firms found that 55% expect prices to increase in the next three months, up from 39% in a similar poll conducted in the latter half of 2024. Three-quarters of companies cited the cost of employing people as their primary financial pressure. The Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year. It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year. Professor Joshua Bamfield, director of the CRR said: "The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025." Professor Bamfield has also warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector. "By increasing both the costs of running stores and the costs on each consumer's household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020."
Sky News
23-05-2025
- Business
- Sky News
WH Smith buyer ousted from auction of struggling discounter Poundland
The investment firm which has agreed to buy WH Smith's high street operations has been eliminated from the auction of Poundland, the struggling discounter. Sky News has learnt that Poundland's owner, Pepco Group, has shortlisted two rival firms to buy Poundland, which needs a capital injection of more than £50m to aid a turnaround plan. A Pepco insider said on Friday that Hilco, the former owner of HMV and Homebase, and former Laura Ashley-owner Gordon Brothers were involved in a two-way race to buy the chain. They added that a decision on a preferred bidder was likely within days. Pepco said this week that underlying earnings at Poundland could be wiped out in the current financial year, underlining the scale of the challenge facing a new owner. If a deal does get agreed with either of the remaining bidders, they would also be required to repay roughly £30m of debt owed to Pepco. Poundland employs more than 15,000 people across an estate of over 800 shops in the UK and Ireland. Industry sources say that roughly 100 stores are likely to be earmarked for closure by a buyer given their poor performance. Recent tax hikes announced by Rachel Reeves, the chancellor, in last autumn's Budget have increased the financial pressure on high street retailers. In recent months, chains including Lakeland and The Original Factory Shop have changed hands amid challenging circumstances. Advisers at Teneo are advising on the Poundland auction.
