And finally… a pound for Poundland
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Discount giant Pepco is actively exploring the sale of its struggling Poundland retail chain for “effectively a pound” due to the substantial costs associated with its turnaround under new ownership, with an exit anticipated before the end of its financial year in September 2025.
The move comes as Poundland grapples with “highly challenging trading conditions”, leading to a significant downturn in performance, City AM reports.
In the first half of the year, Poundland’s revenue fell by 6.5%. Consequently, Pepco has drastically revised Poundland’s expected underlying earnings (EBITDA) for the year to between €0 million and €20m (c. £17m), a sharp decrease from the previous guidance of €50m to €70m (c. £42m to £59m).
This financial struggle is attributed to difficulties in clearing old stock, product availability issues, logistical challenges including Red Sea shipping disruptions, insufficient stock sizing, and high debt.
Furthermore, increased competition from supermarkets and other discounters, coupled with rising operating costs from higher minimum wages and National Insurance contributions, has intensified pressure on the brand.
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