Barry Williams has been made permanent MD of Poundland as its owner Pepco Group looks to sell the UK discount chain.
The Warsaw-listed company will focus on Pepco, Poundland’s sister clothing and general merchandise retailer in Europe, as “the single future format and engine driver of group earnings”, it said ahead of a capital markets presentation for investors later today.
The group is making a “strategic move away from fmcg” – the core of Poundland’s of business. “Therefore, the board is actively evaluating all strategic options to separate Poundland from [the] group during full year 2025, including a potential sale,” it said.
Poundland has been struggling with a slump in sales following a disastrous transition last year to sourcing clothing and GM through the group, which left it with gaps in crucial seasonal ranges such as DIY.
Poundland’s same store like-for-like sales have remained in decline so far in quarter two of its 2025 financial year, which runs to the end of September, “with an underperformance of all categories”.
Williams has turnaround experience, having been parachuted in as MD of Pepco in 2023 to address underperformance. Until then he had been Poundland’s MD since 2017.
He returned as Poundland MD on an interim basis in January, as revealed by The Grocer.
Read more: Poundland: what’s gone wrong and what can it do to fix it?
“Pepco Group has over the last few years sought to integrate the operations of its three brands (Pepco, Poundland and Dealz) with the aim to move to a simpler business model with one brand, one range and one team,” said the announcement.
“We strived to transition at speed to one business with a unified customer offer and a single sourcing strategy, with the expectation this would bring both scale and efficiency benefits.
“However, it has become clear over the last 12 months that this integration has not delivered for customers or shareholders. The fmcg-led businesses have been a drag on the group’s financial performance, with lower revenue growth, lower gross margins, higher costs to operate and, consequently, lower profitability and returns on invested capital compared to Pepco.
“Poundland is a strong brand that serves millions of customers every week and had c€2bn annual turnover in full year, 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.”
Pepco Group CEO Stephan Borchert said: “We are taking clear strategic action to focus on the Pepco brand as our single future format, to move away from fmcg and create a simpler business focused on higher margin clothing and general merchandise.
“Pepco will continue to be the engine of the group’s earnings potential, and its strong customer offer and price leadership give it a compelling ‘white space’ opportunity to drive further profitable growth in its central and eastern European heartland, as well as select markets in western Europe.
“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 MD 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.
“Our latest trading period – with continued positive Pepco like-for-like sales – reflects the brand’s momentum and underpins our focus on the business that accounts for the vast majority of the group’s earnings and our highest returns on capital. In addition, the authorisation of a share buyback capability of up to €200m, which the board can make use of from time to time, reflects the confidence over the strong current and future cash generation of the group, and desire to drive shareholder returns.”
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