Poundstretcher has said it is not planning any store closures or redundancies as it moves ahead with a major restructuring plan focused on reducing property costs across its estate.
The discount retailer, which operates more than 300 stores and employs around 3,000 people across the UK, said it will approach landlords to renegotiate rents as part of efforts to secure the long-term future of the business.
The move comes as retailers continue to face mounting pressure from weak consumer confidence, rising operating costs and a challenging macroeconomic backdrop.
Poundstretcher said the proposal is designed to lower its cost base and ensure its store portfolio remains sustainable over the long term, while freeing up investment for shops, staff and the customer experience.
Chief executive Andy Atkinson said: “This plan we’ve set out today will reduce our cost base and enable us to invest in our stores, our people and the overall customer experience.
“This restructuring plan will help to secure the long-term future of the business by strengthening existing locations and enabling sustainable growth.”
The retailer said trading conditions over the past year had remained difficult despite a clear strategy, central cost reductions, pricing investment and a refreshed product offer. It added that broader pressures on the high street had continued to weigh on sales and profitability.
The latest move marks Poundstretcher’s second major restructuring effort in recent years. In 2020, the business secured landlord backing for rent reductions through a Company Voluntary Arrangement.
Poundstretcher was acquired in 2024 by Fortress Investment Group, the US-based owner of Majestic Wine, for an undisclosed sum. Since the takeover, the retailer said it has introduced a number of initiatives aimed at strengthening the business, including operational improvements, enhanced supplier partnerships and changes to its product range.
The announcement comes at a time when store closures are continuing to rise across the UK. According to the Centre for Retail Research, more than 13,000 shops shut in 2024, up 28.4 per cent on the previous year.
Poundstretcher’s decision to focus on rent negotiations rather than site closures will come as a relief to staff and customers alike, particularly as many retailers continue to shrink their physical footprints in response to ongoing cost pressures.
Click here to sign up to Retail Gazette‘s free daily email newsletter
