The high street has been battered constantly for several years, and new tax increases have seen bosses of some businesses looking at ways of getting out before it’s too late
The fate of one of the UK’s most popular discount retailers and its 850 stores hangs in the balance. Bosses at PepCo, the company which owns Poundland are said to be looking at offloading the brand after revenue plunged by 7.3% last year.
CEO Stephan Borchert has now confirmed that the future of the iconic brand is being explored, as the business wants to “streamline operations” – and a former boss is being brought back to run it as well.
He said: “The board and I are actively exploring separation options for Poundland, including a potential sale, from the Group, with consideration also given to the separation of the well-performing Dealz Poland over the medium term.
“Barry Williams did a great job as managing director of Pepco, returning it to like-for-like sales growth, and I am confident he will play a pivotal role in getting Poundland back on track, given his previous success there.”
And a spokesman added during a trading update last night that the Government’s impending tax hike on UK businesses was also playing a role in the need to look for a sale.
An increase in Employer’s National Insurance has seen an estimated £7billion added to the high street’s already whopping cost base.
They explained: “Poundland is a strong brand that serves millions of customers every week and had circa €2bn annual turnover in FY24, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
“From April 2025, the UK government’s additional tax changes announced in the Budget will also add further pressure to Poundland’s cost base.
“Therefore, the Board is actively evaluating all strategic options to separate Poundland from Group during FY25, including a potential sale.”
The brand currently has more than 850 stores across the UK and Republic of Ireland, and claims to serve up to seven million customer per week.
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