Poundstretcher has made a major announcement regarding potential store closures as it prepares to carry out major restructuring plans.
Earlier today, the discount retailer pledged it will not shut down stores or slash jobs in an effort to cut costs.
Furthermore, Poundstretcher has announced it will approach landlords seeking rent cuts across its entire UK store network as part of efforts to safeguard the business for years to come.
The discount chain, which operates more than 300 shops and employs around 3,000 workers nationwide, confirmed the restructuring will target property-related expenses.
Poundstretcher has vowed to not close any more stores
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This latest announcement from Poundstretcher offers much-needed relief to both the retail workers and shoppers, and comes amid the backdrop of widespread store closures across the UK.
The company stated the measures would "secure the long-term future of the business" whilst ensuring its portfolio of stores "remains sustainable over the long term".
Notably, Poundstretcher's business update comes as the retailer grapples with tough trading conditions affecting the wider sector.
The high street staple attributed the move to a challenging macroeconomic climate that has battered retailers over the past twelve months.
Poundstretcher is a staple of UK high streets
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High streets have been hit by a wave of closures since the pandemic | PAThe company noted that despite implementing a clear strategy, cutting central costs, and refreshing its product range, broader pressures on the high street have continued to weigh on both sales and profitability.
In 2024, the chain was acquired by American investment group Fortress, which also holds Majestic Wine in its portfolio, for an undisclosed amount.
This marks the second significant restructuring effort for Poundstretcher, which previously secured landlord-approved rent reductions through a Company Voluntary Arrangement in 2020.
Since the Fortress takeover, management has implemented several initiatives to strengthen the business, including operational improvements, an updated product offering, pricing investments and enhanced supplier partnerships.
The high street has been hit with store closures in recent months. | PAAndy Atkinson, chief executive of Poundstretcher, said: "This plan we've set out today will reduce our cost base and enable us to invest in our stores, our people, and the overall customer experience.
"This restructuring plan will help to secure the long-term future of the business by strengthening existing locations and enabling sustainable growth."
Based on data from the Centre for Retail Research, store closures are ramping up with more than 13,000 shops shutting down in 2024.
This represents a 28.4 per cent jump from the year before, with analysts citing high operating costs and changing customer habits.