Poundland finalises store closure programme, relaunches Pep&Co clothing

Budget retail chain Poundland has announced the end of its store closure programme, reflecting progress on its court-approved restructuring plan, including the relaunch of its Pep&Co clothing range.

Now under the ownership of Gordon Brothers, the company said it has finalised its store consolidation efforts, which formed part of a restructuring plan approved by the High Court in August 2025. Poundland ended 2025 with 651 of its original 800 stores. Any further store closures will be a “consequence of standard business-as-usual lease events”, the company noted.

Womenswear focus, in-house team established

Changes to its fashion business were also cited among the plans, specifically in regard to the re-launch of its Pep&Co clothing range and bringing operations in-house. Such goals have now been achieved, according to a press release, with a Watford-based team now established, led by Maria Epaminondas.

In addition, Poundland said by the end of January, all adult clothing will have reverted the former Pep&Co branding, with new kids’ and baby ranges in place by the end of February. Around 90 percent of the clothing will be priced below 10 pounds. Across the range, there will be a bigger focus on womenswear, as well as the re-introduction of in-demand size ranges.

Simplified operations reduces employee headcount, digital app closes

Elsewhere, the chain has sought to simplify both its operations and customer proposition. Among the changes are that of the removal of its frozen food category, an overhaul of grocery aisles, the transition of its website to a “brand shop window”, and the closure of its digital app.

Poundland has further shuttered its distribution centres in Darton and Springvale, instead consolidating its network around its Wigan and Harlow sites. The shift, intended to move towards a simpler business structure, has reduced headcount from 14,200 to 12,000 employees.

Profitability improves as cost savings mount

The news comes as Poundland hailed visible progress among its financials. For the first quarter of FY26, ended December 28, 2025, the company recorded an EBITDA of 17.3 million pounds, ahead of the 8.4 million pounds in Q1 of last year. The company also reported 10 million pounds in cost savings, which will be allocated to its Q1 budget.

In a statement, Barry Williams, Poundland’s managing director, said: “While there’s been significant progress as we re-focus and re-energise the business with lower prices and a sharper offer, we know we still have much to do. Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.”

Williams said Poundland’s focus for 2026 would be delivering ranges and price simplicity across clothing, homeware and grocery categories. “[Customers] told us loud and clear they want a simpler, more focused Poundland that keeps its promise of amazing value,” Williams added.