The curious case of why Poundland is struggling during a cost-of-living crisis

"The store was on Rye Lane, a lively high street where Caribbean grocers stack yams next to beauty and phone repair shops. There are bars, cafes and the odd hip vintage shop. But Peckham still has high levels of deprivation and as such it is just the sort of place where a bargain shop should be booming in a cost-of-living crisis."

"Instead Poundland has found itself running a store closure programme as it tries to secure its future on the high street. More than 100 of its shops have either shut or been earmarked for closure since the summer. That's after the business was sold in June for a nominal 1 amid "challenging trading conditions". It does have a turnaround plan but by the end of the process, Poundland expects to end up with between 650 and 700 shops,"

A Poundland store in Peckham closed after 11 years, leaving local shoppers who relied on cheap snacks and toiletries without a nearby outlet. Poundland is running a store-closure programme after being sold for a nominal £1 amid challenging trading conditions, with more than 100 shops closed or earmarked for closure since the summer. The company expects to finish the process with 650–700 shops, down from around 800 earlier in the year. Other discount chains including The Original Factory Shop, Maxideal and B&M Bargains are also reducing estate or struggling due to weak sales. Consumers continue to seek bargains, but budget-shopping behaviour is shifting, affecting footfall and sales at some low-cost retailers.

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