Poundland has welcomed back Barry Williams to its board on an interim basis, less than two years after his departure as MD.

Williams served as the discount giant‘s boss from 2017 until September 2023, when he was appointed MD of Pepco, Poundland’s parent company, to address underperformance in the European business.

His return comes at a critical time for the retailer, which saw its festive sales plummet this year, including a 7.3% drop in like-for-like sales in the three months to 31 December and a 3.6% decline for the full year to 30 September 2024.

These underwhelming results have contributed to a £650m writedown on Pepco Group’s balance sheet, and a £560m net loss for the group.

Williams has rejoined the business to oversee a comprehensive assessment of both Poundland and Dealz in the UK and Ireland, The Grocer reported.

His appointment coincides with board changes, including the resignation of Pepco Group’s CEO, Stephan Borchert, and CFO Neil Galloway from the Poundland Ltd board.

Williams, who previously held senior roles at Asda, including chief customer officer, was replaced by Austin Cooke as MD in 2023. However, with Poundland’s sales continuing to decline, Williams’ return signals a renewed effort to turn the business around.

This follows reports earlier this week that Pepco Group has enlisted AlixPartners to help address the retailer’s ongoing slump.

AlixPartners’ role is expected to focus on improving Poundland’s cash performance and revitalising its customer offering. There is speculation that the consultancy may also explore restructuring options, such as a potential sale or store closures, although Pepco Group has yet to comment on these possibilities.

“We are committed to getting Poundland back on track and will provide an update at our Capital Markets Day in early March,” said a Pepco Group spokesperson following the release its results last week.

The sales struggles are largely attributed to the retailer’s shift in sourcing its clothing and general merchandise at group level. The new product ranges have struggled to meet customer expectations, with issues such as stock gaps and a failure to replicate the previous successful offering.

In a bid to reverse the downturn, at the start of the month Poundland introduced a further 900 products to its £1 or less range as well as lowered the prices on hundreds of items as part of its commitment to delivering value to customers.

It has also introduced a £1 price tag for essential groceries, such as bread and milk, as part of its “Home of the Pound” initiative.

Last week the discounter also committed to tackling retail crime with its “biggest ever investment” to address stock shrinkage, which has risen by 30% in the past two years to over £40m annually.

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