The parent firm of Poundland has said it is taking “immediate measures” to turn around the performance of the UK discount chain after a sharp drop in sales.<br />Poland-based Pepco Group said the UK business, which runs 825 stores, will increase the number of products it sells for £1 or less as part of efforts to get the chain “back on track”.<br /><br />In recent years, Poundland has expanded its range of products being sold at price points above £1 in an effort to take on rival retailers such as B&M.<br /><br />However, on Thursday, the retailer said: “We are refocusing on its long-time strengths, such as recently increasing the number of core items at £1 or below from 1,500 to almost 2,400 in all UK stores.”<br /><br />Pepco said that recent trading at Poundland stores was challenging as the UK retail environment became tougher towards the end of 2024.<br /><br />Poundland revenues slid by 9.3 per cent for the three months to December 31, with like-for-like sales down 7.3 per cent, as it witnessed weaker clothing sales.<br /><br />The group also confirmed that it closed 13 Poundland stores over the quarter, with only two new store openings.<br /><br />It stressed that Poundland will not increase its store numbers over the current financial year as it focuses on improving sales.<br /><br />The company’s report added: “We expect that the toughest comparative quarter for Poundland is now behind us – the same quarter last year represented a period prior to the changes made within our clothing and GM ranges – and therefore, we expect the negative sales performance for Poundland to moderate as we move through the year.”<br /><br />Meanwhile, the wider Pepco Group saw overall revenues grow 8.4 per cent, supported by the opening of new Pepco and Dealz stores.<br /><br />Stephan Borchert, chief executive officer of Pepco Group, said: “The group delivered a mixed performance in its first quarter, with a strong performance from both the Pepco and Dealz brands, partially offset by Poundland’s ongoing challenges.<br /><br />“Poundland saw like-for-likes fall, largely driven by continued underperformance in clothing and general merchandise following the transition to Pepco-source product.<br /><br />“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.”<br /><br />
