A DISCOUNT shop with 793 locations is to shut its store just months after opening.
Poundland is pulling down the shutters on its branch in Eccles, Salford in a fresh blow to the customers.
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Poundland took over a former Wilko location and opened the doors for shoppers in October 2023.
The store remained open even despite a ceiling collapse that shocked horrified shoppers and narrowly missed one employee’s head.
There were also other issues, and parts of the shop were in desperate need for repair despite being open to the public.
Darren Kay, Poundland retail director, told the MEN at the time: “We’re pleased to be able to re-open so quickly in Eccles – not least because our ambition is to provide job opportunities for former Wilko colleagues.
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“Of course, we’re not yet in a position to offer our fullest ranges in the store, but we know customers will appreciate a store that’s open, trading and employing colleagues to one that’s got its shutters closed.
“Poundland intends to carry out a full makeover of the Eccles store in 2024 so it can become a fully operational Poundland.”
The budget retailer took on 13 former Wilko staff members and promised to offer more their jobs back.
But the branch has reportedly shut down less than half a year after it welcomed its first customers.
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The Eccles location closed last month as the Poundland bosses couldn’t come to an agreement on a long-term lease.
Locals have been left devastated as yet another retailer disappeared from the high street.
Ceiling collapses at former Wilko in front of horrified shoppers just hours after it reopens as brand new Poundland
One Facebook user has pointed out that most shops have closed down in the once busy mall section of the town.
“A once vibrant and busy section with shops galore is now a shell of it’s former glory,” they wrote.
Others agreed with one person saying: “Very sad to see, Eccles has gone to the dogs. Who is to blame for this outrageous situation? I loved Eccles years ago but not any more.”
Another one added: “It’s such a shame what they’ve allowed to happen there.”
Someone else wrote: “They are knocking the whole place down. That’s why people are closing.”
Poundland bought up 71 ex-Wilko stores when the retailer fell into administration last year.
The discounter quickly turned around the locations and opened up many of the stores under its own brand before Christmas.
Since then several stores have closed down including locations in Ellesmere Port, Glashiels and the Sailmakers Shopping Centre in Ipswich.
However, it is not all doom and gloom for Poundland fans, as the retailer has also been busy opening up in some new locations.
Most recently the retailer has cut the ribbon on stores in Norwich and Bridgwater.
What else is happening on the high street?
The high street has been hit hard in recent years as shoppers increasingly turn their attentions to online retail.
High energy and wage costs and business rates have further piled pressure on businesses, forcing many to close.
A number of major brands have crashed into administration since the start of 2023, including Wilko and Paperchase.
This year, The Body Shop fell into administration which has seen dozens of branches close. Eighty two will have shut in total by the end of April.
Why are retailers closing stores?
RETAILERS have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
The high street has seen a whole raft of closures over the past year, and more are coming.
The number of jobs lost in British retail dropped last year, but 120,000 people still lost their employment, figures have suggested.
Figures from the Centre for Retail Research revealed that 10,494 shops closed for the last time during 2023, and 119,405 jobs were lost in the sector.
It was fewer shops than had been lost for several years, and a reduction from 151,641 jobs lost in 2022.
The centre’s director, Professor Joshua Bamfield, said the improvement is “less bad” than good.
Although there were some big-name losses from the high street, including Wilko, many large companies had already gone bust before 2022, the centre said, such as Topshop owner Arcadia, Jessops and Debenhams.
“The cost-of-living crisis, inflation and increases in interest rates have led many consumers to tighten their belts, reducing retail spend,” Prof Bamfield said.
“Retailers themselves have suffered increasing energy and occupancy costs, staff shortages and falling demand that have made rebuilding profits after extensive store closures during the pandemic exceptionally difficult.”
Alongside Wilko, which employed around 12,000 people when it collapsed, 2023’s biggest failures included UK Flooring Direct, Planet Organic and Tile Giant.
The Centre for Retail Research said most stores were closed because companies were trying to reorganise and cut costs rather than the business failing.
However, experts have warned there will likely be more failures this year as consumers keep their belts tight and borrowing costs soar for businesses.
Last year, around 14% of insolvencies were in retail businesses, according to official figures.
Other retailers have been closing shops in a bid to reduce their physical presence across the UK.
Last June, Boots said it would be shutting 300 of its 2,200 stores in areas where it already operates one.
Superdry started closing eight of its 104 UK branches last July as part of a £35million cost-cutting project.
But it’s not all bad news in the sector as a number of chains are opening branches too.
B&M has opened 17 branches already this year, while Aldi has its eyes set on opening hundreds more branches in the coming years.
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DIY chain Screwfix is also set to open dozens of branches as its owner Kingfisher looks to expand its nationwide presence.
Major supermarket chain Asda has also been opening dozens of branches across the UK.
