Poundland shoppers have less than a month to buy online with the company ceasing online trading from 16 September. At that point the website will move instead to browsing only. The company will also close its loyalty Poundland Perks app at the same time, although customers will be able to use vouchers until 15 January 2026.
The retailer had originally launched a nationwide online business in 2022 when the purchase of poundshop.com allowed it to expand its then fledgling online site into a national service. It had followed its first online trial in 2021. The additional operational costs of a digital distribution business would eventually be its downfall.
A £60m funding deal was approved for the business this week, after a restructuring plan was approved by the High Court. Had the deal not been agreed the company would have faced administration by tomorrow (Friday). The business was sold by its previous owners Pepco Group for £1 in June.
Around 68 stores are currently earmarked for closure. Poundland’s frozen and digital distribution facility at Darton, South Yorkshire and another in Bilston, West Midlands will close over the next few months.
Online increased operating costs
The company said it that it had struggled in the last two years as the result of an increasingly tough UK retail environment with increases in the UK national living wage and employer national insurance contributions hitting costs. Adding chilled and frozen foods and introducing online sales had also increased operating costs for the business.
Going forward, Poundland is to instead focus on clearer value with more ranges at £1, including around 60% of grocery items. In June, Poundland’s previous boss and founder Steve Smith said that moving away from the £1 focus was one of the biggest mistakes made by the retailer. He had originally set the business up with his father in 1990 and ran it until selling up in 2006.
A new range of £2 and £3 priced goods will also be introduced. The new pricing strategy will launch in stores over the next few weeks after being trialled in West Midlands stores earlier this year. The company said that by returning to its value roots and ending the sale of higher priced products in trial stores had it cut shoplifting by a quarter.
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