Poundland acquires up to 71 Wilko stores

Poundland owner Pepco Group has announced today (12 September 2023) that it has agreed with PwC to take control of up to 71 Wilko store leases.

Lease assignments are expected to be completed in early Autumn, enabling these stores to join Poundland’s existing 800-plus UK estate and trade through the important fourth calendar quarter of 2023.

Pepco stated that it intends to move these stores over to its brand as soon as practical.

While the deal does not include the transfer of any Wilko staff it said it intends to offer some roles to former Wilko staff.

Last week Sky News also reported that B&M could acquire around 50 Wilko shops.

Wilko plunged into administration almost a month ago and appointed PwC as its administrators.

Andy Bond, executive chairman of Pepco Group, said: “The agreement to take control of a number of Wilko store leases will help to bring Poundland’s fantastic prices and offer to even more customers in the UK. It will be pleasing to offer employment to a number of Wilko’s colleagues – who will benefit from being part of a successful and fast-growing pan-European variety discount group.

“Pepco Group is well placed for future success across Europe, supported by its market-leading customer proposition, strong balance sheet and impressive cash flow. The group’s strategy to become a bigger, better, cheaper and simpler business will enable it to continue to provide families on a budget with great range, value and convenience for many years to come.”

Barry Williams, Poundland managing director, added: “In the coming weeks we will work quickly with landlords so we can open these stores as Poundlands with the new ranges that have been pivotal to our recent development. And once that process is complete, we will ensure a significant number of the Wilko colleagues will join our Poundland team.

“We know how valued Wilko colleagues have been in scores of communities across the UK and we look forward to offering them opportunities to join our family.We recognise the last few weeks have been difficult for them and we will move quickly to secure new consents from landlords so we can offer them the certainty they deserve.”

He concluded: “The Wilko stores will accelerate our existing transformation programme, offering amazing value for consumers, providing growth opportunities for suppliers and supporting employment in the high streets, shopping centres and retail parks customers love.”