Poundland reports positive EBITDA as it prepares to open first new store in two years
Poundland has reported “positive EBITDA” for the first nine months of its financial year as it prepares to open it first new store in two years.
The news follows reports earlier this week that the retailer’s owner, Gordon Brothers, is exploring a potential sale of the business, just a year after acquiring it.
Subscribe to TRBIn a trading update, Poundland said EBITDA was broadly in line with expectations in the nine months to 30 June, and over £70 million ahead of the same period in the previous year.
Overall, like-for-like unit volume sales grew by 8% across its revamped FMCG ranges, with 5% like-for-like unit growth for the total business, adjusted to exclude the impact of removed categories, such as extended chilled and frozen foods and transactional online sales.
However, Poundland said that increased unit volume sales in FMCG, combined with a lowering of prices, meant overall like-for-like sales were down 1.5%, although this was an improvement on the previously announced 2.9% decline on the same adjusted basis.
Poundland has also announced that it will be opening its first new store in two years at Lakeside on 29 August as it begins the roll out of its new general merchandise ranges. The retailer has now completed a range reinvention across the category and is rolling out and “all-new” offer to stores across the UK and Ireland.
Poundland said the new collections, which range from faux plants and food storage to cutlery and containers, will bring a fresh new look and lower prices to the category. The roll out also includes investment in deeper seasonal ranges, with autumn and Halloween items already rolling out to stores.
At the end of 2025, Poundland announced that it had simplified its ranges across its core grocery aisles, including reduced prices, and the restoration of its £1 price point to around half its offer. Since then, it has continued to invest in new grocery ranges and has recently revamped its health and beauty aisles with new travel-size toiletries and items such as face masks.
Meanwhile, nearly all new adult clothing has now reverted to its former PEP&CO branding, with 90% of new PEP&CO clothing ranges priced below £10, and almost half below £5.
Poundland managing director Barry Williams said: “Day-by-day and week-by-week we’re getting the Poundland business back-on-track as we turn around the business at pace.
“And the re-launch of our general merchandise offer is a significant moment, completing the wholesale revamp of our entire offer across FMCG, clothing and now homewares.
“Re-building trust with customers takes time, but we’re making very significant progress as we deliver the ranges and price simplicity they demand of us.
“Thanks to the hard work of my colleagues in every store, distribution centre and customer service centre, we’re making the kind of progress many thought was just a pipedream. “We know how important a thriving Poundland is for high street footfall right across the communities we serve.”
