Poundland’s proprietor has mentioned it’s contemplating placing the chain up on the market after warning tax modifications coming in April will put extra strain on the enterprise.
The low cost chain has 825 UK shops however gross sales had been down this January and February, its Polish proprietor Pepco Group mentioned.
An increase in employer Nationwide Insurance coverage (NI) contributions introduced within the Finances begin in April and Pepco says these will “add additional strain” to Poundland’s prices.
A bunch of Excessive Road manufacturers have warned of store closures, job losses and value rises on account of rising prices, however Chancellor Rachel Reeves has defended the NI enhance as “the proper selections within the nationwide curiosity”.
Pepco Group mentioned Poundland was “working in an more and more difficult UK retail panorama that’s solely intensifying”.
“From April 2025, the UK authorities’s further tax modifications introduced within the Finances will even add additional strain to Poundland’s price base,” it added.
Retailers have been among the many most vocal of companies criticising the NI enhance and the rise within the minimal wage, which is able to each occur in April.
Tesco, Amazon, Greggs, Subsequent and dozens of different chains final 12 months wrote to the Treasury urging it rethink among the Finances measures.
The federal government has defended the tax rise as essential to keep away from cuts to public providers.
The Pepco Group, which owns Pepco and Dealz shops in Europe, is making a revenue so is methods to separate itself from Poundland “together with a possible sale,” it mentioned.
As a part of the plans, former Poundland managing director Barry Williams, who took over as managing director of Pepco in September 2023, will return to his Poundland position.
Stephan Borchert, chief govt of Pepco Group, informed Reuters there are “undoubtedly events for this enterprise” and mentioned he was assured Poundland’s future would be determined by September this 12 months.
“Positively we’re all choices however a sale is presumably an excellent choice since we consider that the enterprise will do higher with a brand new proprietor,” he mentioned.
Pepco Group mentioned its “final ambition” is to function underneath the only Pepco model, specializing in its extra worthwhile increased clothes and basic merchandise ranges. It is usually contemplating separating out the well-performing Dealz Poland.
