Poundland up for sale? Parent company Pepco says option ‘is on the table’ amid rising costs; major UK retailer has stores in Inverness and Elgin
Uncertainty surrounds the future of a major high street retailer with stores in the Highlands and Moray after its parent company announced it may sell the chain.
Poundland, which operates 825 stores across the UK including two in Inverness and one in Elgin, could be sold by its owner, Pepco, as it looks to restructure its wider business portfolio and concentrate on its Pepco brand.
The news came after Pepco reported challenging conditions in the UK market, citing that sales were down in January and February, and adding that planned increases in employers’ National Insurance contributions in April will also likely increase cost pressures.
However, the company also called it a “strong brand” that generated around £1.7 billion in annual turnover in its most recent financial year.
Confirming that it was looking at a range of options - including selling Poundland off as a separate business - a spokesperson for Pepco said: “Poundland is a strong brand that serves millions of customers every week and had around €2 billion in annual turnover in financial year 2024 but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
“From April 2025 the UK government’s additional tax changes announced in the budget will also add further pressure to Poundland’s cost base.
“Therefore the board is actively evaluating all strategic options to separate Poundland from the group during financial year 2025, including a potential sale.”
It is unknown what impact the possible sale could have on Poundland and its various shops, but the move is likely to spark some uncertainty among staff and fans of its stores.
Although Pepco warned of “more difficult” trading conditions and rising costs, it also stressed that its underlying turnover meant there was “definite interest” from other businesses.
Stephan Borchert, the chief executive of Pepco Group, said he was confident Poundland's future will be decided by September.
He said: “We are taking clear strategic action to focus on the Pepco brand as our single future format, to move away from fast-moving consumer goods and create a simpler business focused on higher margin clothing and general merchandise.
“Pepco will continue to be the engine of the group’s earnings potential, and its strong customer offer and price leadership give it a compelling ‘white space’ opportunity to drive further profitable growth in its central and eastern European heartland, as well as select markets in Western Europe.
“The board and I are actively exploring separation options for Poundland, including a potential sale, from the group, with consideration also given to the separation of the well-performing Dealz Poland over the medium term.”
He also confirmed Poundland’s former managing director, Barry Williams, who became the managing director of Pepco back in September 2023, will be returning to his former role.
“Barry Williams did a great job as managing director of Pepco, returning it to like-for-like sales growth, and I am confident he will play a pivotal role in getting Poundland back on track, given his previous success there.”
