The owner of Poundland is considering a sale of the retail chain as the Chancellor’s Budget will see an increase in wage costs resulting in difficulties in trading.
Pepco Group said they are considering “all strategic options” as the retail chain is struggling amid the changes Rachel Reeves made in the Budget.
Pepco has given a warning over their annual earnings at Poundland there will be “more difficult” trading conditions as costs continue to increase.
Pepco said, “Poundland is a strong brand that serves millions of customers every week and had around two billion euros (£1.67 billion) in annual turnover in financial year 2024, but it is also operating in an increasingly challenging UK retail landscape that is only intensifying.
“From April 2025, the UK Government’s additional tax changes announced in the Budget will also add further pressure to Poundland’s cost base.
“Therefore, the board is actively evaluating all strategic options to separate Poundland from group during financial year 2025, including a potential sale.”
Stephan Borchert, chief executive of Pepco Group, said, “The board and I are actively exploring separation options for Poundland, including a potential sale, from the group, with consideration also given to the separation of the well-performing Dealz Poland over the medium term.
“Barry Williams did a great job as managing director of Pepco, returning it to like-for-like sales growth, and I am confident he will play a pivotal role in getting Poundland back on track, given his previous success there.”
