POUNDLAND has shut another location in a “surprise move” after leaving it off the recently published list of store closures.
One of the popular budget retailer’s Birmingham branches has ceased trading for good.
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This comes after Poundland confirmed the locations of 48 store closures earlier this week.
The discount giant is currently undergoing major restructuring plans which include the shuttering of a whopping 68 shops by mid-October.
Among those to be closed in Birmingham were the Kings Heath and Sheldon branches on August 24, as well as the Erdington store on August 31.
However, the prominent Selly Oak Battery Retail Park was not featured on the list, but has since permanently closed down.
Shoppers were alerted to the news with signs on the shopfront reading “sorry, this store is now closed.”
Birmingham isn’t the only area facing Poundland closures, as 12 more stores across the UK are set to cease trading this week.
Ahead of the closures, a huge 75% off sale is well underway.
The Sun reported that the bargain retailer is preparing to close locations in Newcastle, Salford, Canterbury and Coventry, among many others by the end of this week.
As it stands, Poundland operates 800 stores nationwide, but the company hopes to significantly reduce this number to between 650 and 700.
The closures come as Polish owner Pepco Group sold Poundland to a US investment firm Gordon Brothers for £1 after a downturn in trading.
Pepco Group has owned the retail chain since 2016.
The retailer was put up for auction in March, with Homebase owner Hilco then reported among the bidders.
Major restructuring plans have since followed which include the string of store closures, and an £80million cash injection.
This restructuring will also facilitate the closure of its frozen and digital distribution centre in Darton, South Yorkshire, later this year.
The firm plans to shut its national distribution centre in Bilston, West Midlands by early 2026 as well.
Poundland will also stop selling products online and focus on expanding its womenswear and seasonal ranges.
On the closures, Darren MacDonald, retail director at Poundland, said: “While our anticipated network of around 650-700 stores remains sizeable, it is of course, sincerely regrettable that we’re closing a number of stores to allow us to get us back on track.
“We entirely understand how disappointing it will be for customers when a store nearby closes, but we look forward to continuing to welcome them to one of our other locations.
“Work is underway to with colleagues through a formal consultation process in stores scheduled to close, exploring any suitable alternative roles.”
Full list of Poundland August closures:
The following Poundland stores closed permanently on August 17:
- Bedford
- Bidston Moss
- Broxburn
- Craigavon
- Dartmouth
- East Dulwich
- Falmouth
- Hull St Andrews
- Newtonabbey
- Perth
- Poole
- Sunderland
- Stafford
- Thornaby
- Worcester
An additional 12 locations will shut on August 24:
- Brigg
- Canterbury
- Coventry
- Newcastle
- Kings Heath
- Peterborough
- Peterlee
- Rainham
- Salford
- Sheldon
- Wells
- Whitechapel
Finally, on August 31, the following branches will also close:
- Blackburn
- Cookstown
- Erdington
- Kimberley Kimberley Shopping Centre, Nottingham
- Horsham
- Hull Holderness
- Kettering
- Omagh
- Shepherds Bush
- Southport
- Taunton
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
However, additional costs have added further pain to an already struggling sector.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April will cost the retail sector £2.3billion.
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 Centre for Retail Research (CRR) has also warned that around 17,350 retail sites are expected to shut down this year.
It comes on the back of a tough 2024 when 13,000 shops closed their doors for good, already a 28% increase on the previous year.
Professor Joshua Bamfield, director of the CRR said: “The results for 2024 show that although the outcomes for store closures overall were not as poor as in either 2020 or 2022, they are still disconcerting, with worse set to come in 2025.”
It comes after almost 170,000 retail workers lost their jobs in 2024.
End-of-year figures compiled by the Centre for Retail Research showed the number of job losses spiked amid the collapse of major chains such as Homebase and Ted Baker.
It said its latest analysis showed that a total of 169,395 retail jobs were lost in the 2024 calendar year to date.
This was up 49,990 – an increase of 41.9% – compared with 2023.
It is the highest annual reading since more than 200,000 jobs were lost in 2020 in the aftermath of the COVID-19 pandemic, which forced retailers to shut their stores during lockdowns.
The centre said 38 major retailers went into administration in 2024, including household names such as Lloyds Pharmacy, Homebase, The Body Shop, Carpetright and Ted Baker.
Around a third of all retail job losses in 2024, 33% or 55,914 in total, resulted from administrations.
Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.
Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”
