Struggling budget chain Poundland has been sold for £1 and now faces a shake-up which could see up to 100 stores close. Its owner Polish firm Pepco confirmed it had sold the brand for a "nominal" sum to US investment firm Gordon Brothers. Poundland has 825 UK stores and around 16,000 staff and was struggling to compete with other discount stores, with sales down this January and February.It comes after Pepco warned that increased employer National Insurance contributions which kicked in in April would put added pressure on the chain. Pepco Group has owned Poundland since 2016, but the firm had to auction the brand off after sales slumped over the past year. Pepco said it was effectively offloading an unprofitable part of the business and Poundland remained a well-loved brand with millions of customers annually. But retail analyst Sofie Willmott from GlobalData said Poundland's appeal has been waning as UK consumers sought better quality and value for money elsewhere. "Those who favoured Poundland for low price groceries have been tempted away by the supermarkets who have been aggressively competing on price, and the failure of its clothing range has been a distraction for the retailer", she said. Brands such as Temu and Shein have "fundamentally changed consumer expectations around price, speed and convenience"
BBQ - What do Poundland need to do to win back more customers?
