Coronavirus: Poundland puts 100 stores into ‘hibernation’

The value retailer, which operates an 850-strong UK store estate, is temporarily closing stores in locations where it has another outlet in operation nearby, as well as in shopping centres such Meadowhall Sheffield and Manchester Arndale, where mass closures of ‘non-essential’ stores have driven down footfall traffic.

There will be no job losses as a result of these closures, with impacted staff either placed on furlough or transferred to nearby stores.

As a result of these changes, an additional 250 central colleagues in Poundland’s offices in Willenhall and Watford who will also be asked to agree to a furlough period.

Poundland has been defined as an essential retailer under government guidelines, with approximately 70% of its range categorised as groceries and essential household items.

Managing director Barry Williams said: “We served nearly 3 million customers last week with groceries and household essentials. It has been an amazing effort by all our colleagues. But people’s buying patterns are naturally changing as they stick to the government’s advice to stay at home and this is having an impact.

“The measures we’re taking, such as putting some stores into hibernation, will help us better serve communities from the majority of stores that remain open during this period of disruption.

“It will make sure we’re well placed for recovery once the country emerges from its current battle.”

Parent company Steinhoff delayed a potential sale or float of the value business’ European division, which comprises 2,000 stores including Poundland in the UK and Pepco and Dealz in Europe, earlier this month due to coronavirus volatility.