Poundland hails turnaround progress
Poundland has reported an improved performance in its Christmas trading period as it works through its recovery plan.
In its first quarter ending 28 December, EBITDA rose to £17.3 million which was £8.4 million ahead of the same quarter in the prior year.
Subscribe to TRBDuring the period, Poundland refocused its grocery aisles on a simpler, proposition that includes three price points of £1, £2, £3. With 60% of its grocery items now priced at £1, the retailer will launch a new nationwide advertising campaign next week to highlight the everyday value of its ranges.
Overall, like-for-like unit volume sales across the revamped FMCG ranges increased by 9%, compared with like-for-like unit growth of 2% across the wider business.
Higher unit volumes in FMCG, combined with significant price reductions, resulted in re-adjusted like-for-like sales declining by 2.9% in the quarter. This figure excludes the impact of discontinued categories such as extended chilled and frozen foods, as well as transactional online sales.
Poundland said it had made significant progress since the approval of its restructuring plan by the high court in August 2025, including bringing its store consolidation programme to an end.
Following the closure of unprofitable stores, the retailer ended 2025 with 651 locations, down from around 800 prior to the reorganisation. It also completed the transition of its transactional website to a brand shop window and retired its digital app.
Poundland managing director Barry Williams said: “While there’s been significant progress as we re-focus and re-energise the business with lower prices and a sharper offer, we know we still have much to do.
“Our focus on our costs has, without doubt, given us a platform for future growth, but no sustainable turnaround can be based on cost management alone.
“That’s why our focus in 2026 will be on delivering the kind of ranges and price simplicity our customers want right across the store – in clothing, homewares as well as our core grocery aisles.
“They’ve told us loud and clear they want a simpler, more focused Poundland that keeps its promise of amazing value. We have clear indications from the work we’ve already done, that we’re on the right track.
“That progress is very much down to the hard work of our colleagues in challenging circumstances. I want to thank them for helping us achieve so much in the last few months.We will continue to do all we can to support them.”
