Poundland closes 12 stores and launches large sale

Poundland closes 12 stores this week while launching a 75 percent off sale as part of a wider restructuring under new owners.

Poundland closes 12 stores as it cuts prices by 75 percent

Poundland has announced a 75% off sale across its shops as 12 sites will shut this week. The closures are part of a wider plan to reduce the store network from about 800 to 650 to 700 sites. The affected locations include the Killingworth Centre in Newcastle, with more closures expected in the coming days. Poundland says 68 stores will close by mid October and a further round of closures will follow as leases end.

The deal that brought Poundland under new ownership with Gordon Brothers included an £80 million cash injection. From September 16 online sales will end and the Poundland Perks loyalty scheme will be axed, with vouchers valid until January 15, 2026. The changes also include closing the distribution centre in Bilston, cutting frozen and chilled items, and focusing on womenswear and seasonal ranges. A High Court hearing is scheduled this month to approve the changes.

These moves signal a sharp shift in Poundland strategy under private equity ownership. Price cuts can drive stock turnover but may not fully compensate for lost store access if closures erode footfall. A smaller footprint could preserve core value pricing while reducing overheads, yet it also risks alienating customers in towns where Poundland was a convenient option. The plan to scrap loyalty and online channels suggests a leaner model that relies on price alone to attract shoppers. Public reaction and investor confidence will help determine how far this restructuring goes.

Highlights

The retail landscape continues to shift as value shoppers and landlords watch closely.