Register to get 2 free articles
Reveal the article below by registering for our email newsletter.
Want unlimited access? View Plans
Already have an account? Sign in
Poundland has delivered earnings of £17.3m in the first quarter ended 28 December 2025, spelling an £8.4m rise on the year before, as the discounter moves to the next phase of its recovery.
Management attributed the growth to fundamental changes in the business and £10m in additional cost savings.
News comes after the high court approved a restructuring plan in August 2025, leading to the closure of unprofitable sites. Poundland ended the year with 651 stores, down from approximately 800 locations.
Total headcount likewise fell from 14,200 to 12,000 during the period. The retailer consolidated its distribution network around centres in Wigan and Harlow, closing sites in Darton and Springvale.
The business removed frozen food and simplified chilled ranges to focus on its £1 price point. Approximately 60% of grocery items are now sold at £1, leading to a 9% rise in volume sales for these ranges.
Poundland has announced it will launch a marketing campaign next week to highlight its pricing. It also confirmed the transition to in-house designed Pep&CO clothing, with 90% of items priced below £10.
In addition, a partnership with the Retail Trust has been established to provide staff with wellbeing support. The charity offers a 24-hour helpline and counselling services to retail workers.
Barry Williams, managing director of Poundland, 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.”
He added: “That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store – in clothing, homewares as well as our core grocery aisles.”
