Poundland Faces Potential Sale as Owner Pepco Explores Exit Options

By Evans Momodu
2 minute digest
Published 15:06 UK GMT, March 6, 2025

Poundland, the popular UK discount retailer, is on track to be sold, as its owner Pepco Group struggles with an increasingly challenging retail market in the UK.

Poland-based Pepco Group announced on Wednesday that it is exploring all options for its 825-store Poundland chain, including a potential sale. Later, Pepco confirmed  that it had received interest from potential buyers.

CEO Stephan Borchert stated:
"There are definitely interested parties for this business," but declined to share further details on discussions or Poundland’s valuation.

The company is considering the sale due to tough competition in the UK discount retail sector, weak consumer demand for its product ranges, and rising costs, including higher employer National Insurance contributions from April 2025.

In 2024, Poundland recorded €2bn (£1.7bn) in sales, but in December 2024, Pepco took a £642m (€775m) financial hit related to the chain due to inflation and cost pressures.

Pepco expects Poundland’s future to be decided by September 2025. Meanwhile, the group’s central and eastern European operations under Pepco and Dealz brands are shifting focus from fast-moving consumer goods to higher-margin clothing and general merchandise.

Who is Buying Poundland?

Industry analysts suggest potential buyers could include UK-based retail groups looking to expand their discount store footprint, private equity investors seeking to capitalise on the budget retail market, or supermarket chains interested in Poundland’s strategic store locations.

With strong buyer interest, Poundland could soon have new ownership, potentially reshaping the UK discount retail market.
Source: Sky news