Poundland Stores Closure Leads To £1-£3 Pricing Across UK as Retailer Goes 'Back To Its Roots'

Two more Poundland stores are expected to close in January 2026

Poundland stores across the United Kingdom are reverting to a simple £1–£3 pricing system. The change follows months of closures, financial challenges, and a major restructuring plan after new ownership took over.

The decision, announced in November 2025, marks an effort by the retailer to regain its position among budget-conscious shoppers while stabilising operations after a turbulent year.

The shift reflects Poundland's intent to reconnect with its early identity as a single-price discount chain.

Poundland Reverts to £1–£3 Pricing

Poundland confirmed that it will roll out a £1, £2, and £3 pricing structure across its stores. This simplified model aims to remove price confusion and highlight affordability amid the ongoing cost-of-living pressures in Britain.

The plan was tested in 17 West Midlands outlets earlier this year. According to Poundland, the trial produced strong customer feedback and sales performance. The new system will now extend to all UK stores, covering groceries, household goods, and clothing ranges in the coming months.

A spokesperson explained that the decision 'takes us back to our roots' and is designed to help 'turn around our fortunes'. Poundland said around 60 per cent of grocery products would remain priced at £1, ensuring shoppers can still find everyday essentials at low prices.

Poundland Wants Shoppers To Take Advantage

Poundland is also urging shoppers to benefit from clearance sales as part of the ongoing closures. Discounts of up to 40 per cent are being offered on remaining stock, including homeware, clothing, health, and beauty products.

'Customers will be able to take advantage of significant savings as these stores prepare for closure', a Poundland spokesperson said via Express UK.

UK Country Manager Darren MacDonald expressed appreciation for loyal shoppers and said that the company wants to close stores respectfully.

'We know how disappointing it is when we leave a store, but before we close our doors for a final time, we're determined to say goodbye by offering even more amazing value', he said.

MacDonald added that when a store closes, customers can still visit hundreds of Poundland outlets operating nationwide.

Reason Behind Poundland Store Closure

According to The Standard, Poundland's store closures follow Poundland's acquisition by US investment firm Gordon Brothers in June 2025. The firm purchased the chain from Pepco Group for a symbolic £1. Analysts estimate it may cost nearly £100 million to stabilise the retailer after years of weak performance.

Pepco said the sale aimed to simplify its business operations and focus on its successful European stores.

Managing Director Barry Williams said the closures form part of a plan to bring Poundland 'back on track'. He admitted that performance had 'fallen short' and that action was needed to restore profitability. High rent, lease expirations, and increasing operational costs also influenced the decision.

The restructuring includes closing 68 outlets and two warehouses, affecting about 1,300 jobs.

Poundland Stores To Drop To Less Than 800

Poundland's total number of outlets is expected to fall to between 650 and 700 by the end of 2026. That figure represents a sharp drop from around 800 stores at the start of 2025.

More than 30 branches have already shut since October, with 13 more closing before Christmas and additional closures set through early 2026.

Recently closed shops include sites in Twickenham, Market Harborough, Lowestoft, and Burnley. Others will follow in Loughborough, Peckham, and Hempstead Valley by December.

However, four locations — Andover, Livingston, Musselburgh, and Porthcawl — were saved after new lease deals were struck.

Before the restructuring, Poundland employed over 16,000 people across 792 outlets in the UK and Ireland. Despite the challenges, company officials said they remain committed to providing affordable products and maintaining the trust of British shoppers.