Poundland to streamline grocery offer and axe ecommerce in rescue plan

Poundland is set to slim down its grocery offer and simplify its digital presence as part of a mass overhaul of the entire business.

The struggling discount chain has confirmed the details of its recovery plan, which also include store closures and the retirement of its Perks loyalty app – less than a year after its nationwide rollout.

The retailer said it hopes the restructuring plan will deliver “a financially sustainable operating model for the business after an extended period of under-performance”.

It is the first major announcement from Poundland since it was acquired by Gordon Brothers last week for a “nominal sum”.

As part of its plans, the retailer will withdraw from the retail sale of frozen food in the stores where it is currently offered and reduce its chilled food offer.

Poundland’s food offer moving forwards will instead be centered around its £3 meal deal and chilled essentials, such as milk.

The stripped back grocery offer will see the closure of the retailer’s frozen and digital distribution centre in Darton, South Yorkshire later this year and its national distribution centre at Springvale in Bilston, West Midlands in early 2026. Delivery volumes will be absorbed into its existing warehouses in Wigan and Harlow.

Poundland said that it will bring back its previous general merchandise and clothing ranges that were “lost during the transition to Pepco-sourced products”.

The retailer is also planning to simplify its digital presence, converting Poundland.co.uk from a transactional website to a brand website.

Poundland confirmed that its restructuring, subject to court approval, is also expected to result in the closure of 68 stores and rent reductions across a hundreds of other locations. It is hoping to downsize its 800-plus store estate to a network of 650 to 700 sites.

Poundland managing director Barry Williams 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.”

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