Poundland to close up to 80 branches

According to the Sunday Telegraph, discount retailer Poundland is considering closing up to 80 of its branches, only two months after it was acquired by Steinhoff Group, the South African based retail giant. 

The move to consolidate the Poundland estate follows the rapid expansion of the business last year, when it acquired its major competitor 99p Stores. It quickly converted 235 of those stores to the Poundland branding, resulting in an overall estate of more than 900 outlets. News of the store closure plan was revealed when a list of targeted stores was circulated to property agents and includes locations nationwide.

Steinhoff acquired the Poundland business in September of this year, valuing the business at £610m. That move has helped them expand in Europe, building on the 2014 acquisition of Pepkor, the company behind the start-up variety discount retailer, GHM!

Read - Steinhoff ups Poundland bid.

Worldwide Steinhoff now operates over 7,000 stores across 30 countries, including 40 brands in Europe. The group also narrowly lost out to Sainsbury's in its purchase of Home Retail Group earlier this year.

Source: Sunday Telegraph & Insight DIY Team

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