Poundland owner mulling possible sale of UK retailer

(Sharecast News) - Poundland owner Pepco Group is considering a sale of the UK discount retailer as it struggled with a weak economic environment and recent government budget measures.

Poland-based Pepco said it was considering "all strategic options" for the chain - which used to sell all items at �1 - as it focuses on its more profitable own brand stores as they make the "vast majority" of group earnings

"Poundland is a strong brand that serves millions of customers every week and had �2bn annual turnover in full-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," the company said as part of a presentation to investors.

Pepco warned that underlying annual earnings at Poundland would come in at between �50m - �70m as sales remained in negative territory over January and February, Pepco said.

Pepco will also look at options to offload its Dealz business in Poland in the medium term and confirmed it is starting a strategic review of its Pepco chain in Germany.

As part of the plans, former Poundland managing director Barry Williams, who took over as the managing director of Pepco in September 2023, would return to his former role at Poundland ahead of a possible sale.

"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," said Pepco chief executive Stephan Borchert.

Reporting by Frank Prenesti for Sharecast.com