Major discount chain with 800 sites shuts 13 stores in three months in blow to high street

A MAJOR discount chain with 800 sites has shut 13 stores in three months in the latest blow to the high street.

Pepco – the Polish parent company behind Poundland – revealed this morning it shut over a dozen sites in the UK.

It came as the bargain retail group announced its trading results for the three months leading to December 31, with revenue sliding by 9.3% at Poundland.

Bosses blamed a slowdown in clothing sales for the dip and said it would work to get the affordable home and food retailer “back on track”.

Stephan Borchert, chief executive officer of Pepco Group, said: “The group delivered a mixed performance in its first quarter.

“Poundland saw like-for-likes fall, largely driven by continued underperformance in clothing and general merchandise following the transition to Pepco-source product.”

He added: “Getting Poundland back on track is a key priority – we are undertaking a comprehensive assessment of the business and taking immediate measures on improving cash performance and strengthening the customer proposition.”

It went on to say that Poundland would not increase its store numbers over the current financial year as it focuses on improving sales.

The retailer only opened two stores over the quarter and closed a total of 13.

The Sun has contacted Pepco for the full list of closures and will update the piece once we hear back.

A number of local shoppers have already noticed the bargain retailer vanishing from their high street.

In October, Maidenhead residents were left heartbroken following the closure of one of its branches.

Poundland on Maidenhead High Street will close for good on October 18 due to failing to secure an agreement with its landlord.

The retailer replaced what was once a Wilko back in 2023.

At the time locals branded the move “a joke” and said Poundland’s exit would leave the area like a “ghost town”.

This was on top of closures in in Sutton Coldfield on October 5 and the closure of its Macclesfield site in August after it was unable to secure a new lease agreement.

TROUBLE AT THE BARGAIN CHAIN

The news is indicative of the harsh retail climate which has plagued high streets up and down the UK in recent years.

Rising costs coupled with shoppers tightening their purse strings have placed pressure on businesses and damaged sales.

Bargain retailers such as Poundland, B&M and Home Bargains, have performed better than others thanks to their low price point, but this has created rivalry.

Just this week, Poundland said it would increase the number of items which cost £1 or less from around 1,500 to almost 2,400 to appeal to cash strapped shoppers.

The firm has also been battling a rise in theft, with hundreds of employees now wearing bodycams to help catch criminals.

Today’s report comes just a month after Pepco said it was facing “a higher cost outlook in the UK following the recent Budget” announced by Labour Chancellor Rachel Reeves.

Profits at the firm tumbled by £641million in the year to September, with bosses again blaming slow sales and a poor outlook thanks to measures set out by Reeves.

Chancellor Rachel Reeves said during her autumn statement she would raise employers’ National Insurance contributions (NICs).

She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.

It’s estimated that the move will raise £25billion – the equivalent of around £800 per employee for each firm.

At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.

The move has been blasted by a number of high street stores, including Gregg’s, Sainsbury’s and Next and Halfords who said the move could force them to raise prices and further bruise the industry.