AROUND 100 Poundland stores face the threat of closure after the discount retailer was sold for just £1 yesterday.
However, before this announcement, the chain had already planned to shut 18 sites.
Several more Poundland stores are due to close this summer[/caption]
Of these, 14 branches have already shut down this year, with four more set to close permanently by August.
Poundland’s store in Barrow in Furness closed yesterday (June 12), with the retailer launching a 70% off sale to shift stock.
The Union Gate store in Bristol is the next location scheduled to close, with the branch set to shut its doors on June 20.
The Flint branch is scheduled to close the following day, on June 21, while the store in Cowes, on the Isle of Wight, is expected to shut at an unspecified date in July.
The branch on Bank Street in Newquay is the latest confirmed closure and will cease trading on 1 August.
Heartbroken locals have launched a petition in a bid to save the store.
Sharon Gill, who launched the petition, wrote: “Many residents count on Poundland for their everyday needs.
“The reality for most of us is that we don’t have the luxury of a car to travel to nearby towns.
“The nearest alternatives in St Austell or Truro are inconveniently far away, and public transport means hours of commute for essentials that should be easily accessible.”
A spokesperson for Poundland, which issued redundancy notices to staff at the branch, said at the time: “It’s correct our Newquay store is sadly set to close on August 1 as we’ve been unable to agree terms that would allow us to keep trading there.
“We’d obviously like to thank customers for their continued support over the next couple of months.
“It goes without saying whenever we close a store in circumstances like these, we do all we can to look for other opportunities for colleagues and that work is now underway.”
Along with these upcoming closures, it’s thought that around 100 stores are at risk along with thousands of high street jobs.
This is the full list of stores that have closed, or are set to close in the coming months:
- Connswater Shopping Centre, Belfast – closed March 2024
- Macclesfield – closed August, 2024
- Maidenhead – closed October, 2024
- Sutton Coldfield – closed October, 2024
- Clapham Junction Station, London – closed May 2
- Belle Vale Shopping Centre, Liverpool – closed May 6
- St George’s Centre, Gravesend – closed May 8
- Southwark Park Road – closed May 14
- Copdock Mill Interchange, Ipswich – closed May 20
- Brackla, Wales – closed May 24
- Chiswick High Road – closed May 28
- Filton Abbeywood – closed May 31
- Surrey Quays – closing June 11
- Barrow Dalton Road – closing June 12
- Union Gate, Bristol – closing June 20
- Flint – closing June 21
- Cowes, Isle of Wight – closing July (exact date tbc)
- Newquay, August 1
Poundland still has 800 stores trading across the UK.
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.”
What’s happened to Poundland?
The bargain retailer was sold to Gordon Brothers for ‘just £1’ earlier this week.
Gordon Brothers, the ex-owner of Laura Ashley, agreed to provide up to £80million in financing to Poundland.
However, the deal puts thousands of high street jobs at risk with the parent firm planning a major restructure.
More details on what the restructuring plan will involve will be revealed “in due course”, Poundland said.
Poundland is expected to close around 100 of its roughly 800 stores and ask for rent reductions from landlords as part of the process.
It’s unclear what will happen to the 16,000 Poundland staff members.
However it’s been confirmed the business will continue to operate under the Poundland brand in the UK.
Pepco Group had owned the retail chain since 2016.
The retailer was put up for auction in March, with Homebase owner Hilco then reported among the bidders.
Poundland’s boss Barry Williams said yesterday: “Poundland is a UK and Ireland retailer of real significance, serving 20million customers each year with a much-loved brand.
“I’d like to thank Pepco for its stewardship of the business.
“We welcome Gordon Brothers and look forward to working with them as we implement our turnaround plan.”
Last month, Poundland reported revenues dropped by 6.5% to 985million euros (£830 million) for the six months to March, compared with a year earlier.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
However, additional costs have added further pain to an already struggling sector.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
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.”
It comes after almost 170,000 retail workers lost their jobs in 2024.
End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker.
It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date.
This was up 49,990 – an increase of 41.9% – compared with 2023.
It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic, which forced retailers to shut their stores during lockdowns.
The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker.
Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations.
Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.
Professor Bamfield has 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.”
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
