Poundland to close 12 stores in October: which cities are affected.

According to The Sun: The major retail giant is closing another twelve of its stores this month, marking a new blow for British shopping streets.

This discount brand with low prices and shelves stocked with items for one pound is trying to cut costs to survive challenging conditions.

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Poundland is undergoing a major reorganization, during which it will close 68 stores, 12 of which will shut this month.

The economic situation for British retailers is becoming increasingly difficult, as closed windows and empty shops have become a common sight across the country.

Even one of the UK's most well-known budget brands is feeling the financial strain.

This large chain, which employs 14,700 staff, has faced financial difficulties in recent years.

Key Changes

The new owner, Gordon Brothers, who ironically bought the chain for 1 pound in June, announced plans to invest 90 million pounds to rescue the business.

The plan to rescue Poundland involves closing 68 stores, cutting 1,000 jobs, and closing two warehouses, which will affect 350 workers.

The reorganization also includes reducing rent in 180 stores and closing the frozen food department and website.

Among the eleven stores originally scheduled to close but will remain open are Irvine’s Rivergate Centre, Brighton (London Road), Anniesland (Great Western Road), and Whitby.

Poundland Store Closures This Month

• Twickenham - closing October 5
• Westhoughton - closing October 5
• Market Harborough - closing October 9
• Porthcawl - closing October 10
• Lowestoft - closing October 10
• Colne - closing October 11
• Musselburgh - closing October 12
• Livingston - closing October 12
• Rochdale - closing October 13
• Leicester - closing October 17
• Tenby - closing October 18
• Walsall - closing October 29

Other Changes at Poundland

Customers will also notice changes in stores from this discount. Now shoppers cannot use the Poundland website for purchases.

Meanwhile, the Poundland Perks loyalty program has been canceled.

Customers of the Poundland Perks program can use their bonus vouchers until January 15, 2026.

The chain will also close its frozen food storage center and digital distribution center in Darton, South Yorkshire, later this year.

Closure of the national distribution center in Bilston is also planned for early 2026.

The discount chain has launched sales in several stores, some offering discounts of up to 90%.

This news comes against the backdrop of Poundland returning to basics by increasing the number of one pound items in stores.

As part of the reorganization, the chain introduced price categories of £1, £2, and £3 for all its products last month.

The percentage of products at one pound increased to 60%, while 20% of products now cost 2 pounds, and another 20% are priced at 3 pounds.

Retail Challenges in 2025

The British Retail Association has forecast that the increase in national contributions for employers will cost the retail sector £2.3 billion.

Research from 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 companies revealed that 55% expect price increases over the next three months, which is 16% higher than a similar survey at the end of 2024.

Three-quarters of companies cited labor hiring costs as their main financial burden.

The Retail Research Center has also warned that around 17,350 retail establishments are expected to close this year.

This occurs against the backdrop of a challenging 2024, when 13,000 stores permanently closed their doors, up 28% from the previous year.

Professor Joshua Bamfield, director of CRR, noted: “The results of 2024 show that while closures were not as severe as in 2020 or 2022, they are still concerning, and the situation may worsen in 2025.”

Professor Bamfield also pointed out a grim future for 2025, predicting that up to 202,000 jobs could be lost in the sector.

“Rising costs of maintaining stores and expenses for each household will undoubtedly lead to retail job losses that will outweigh the numbers during the pandemic in 2020.”

In light of the closure of several Poundland stores, the company is making certain changes to its strategy aimed at reducing costs and adapting to economic challenges. This confirms the overall trend in the UK retail sector, which is characterized by an increasing number of store closures and financial difficulties that may have serious consequences for workers and consumers. It remains to be seen how these changes will impact the company's position in the market.