The group will save£2.4 million in conversion costs by preserving both fascias. Research carried out by the retailer found that neither brand had a particularly strong identity, although the Poundstretcher name was generally not well regarded and the Instore brand was thought to be more modern.
In a strategy review and trading update released today, the value retailer said it would gradually close its unprofitable stores and selectively modernise and update others. In total, it will shut 25 stores, although seven will be re-sited. Twenty-four shops have been identified as requiring a full refurbishment and 90 will require a re-lay or major refit.
Instore also revealed group like-for-like sales up 7.3 per cent for the 24 weeks to August 12. Total sales rose by 6.4 per cent.
Chief executive Trevor Coates will meet with shareholders, analysts and bankers today to update them on his plans for returning the group to profitability.
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