UK roundup: Restructuring, value and retail jobs

Poundland reports additional losses in 2025 results

The variety discounter Poundland, is continuing to struggle; results for the 52-week period ending 28th September 2025 show total revenue declining almost 12% to £1.5 billion across the UK, Ireland and the Isle of Man. A pre-tax loss of £85.2 million was reported. The recently released documents also show that revenue for Ireland was overstated by £60 in the results for 2024, whose release preceded the acquisition by investment firm Gordon Brothers.

Senior Insight Analyst, Michela Pearson’s view:

2025 was a year of transformation for Poundland, as it underwent a massive store closure programme, removed categories form the assortment and returned to a round price point across its offering. Nonetheless, difficulties have continued to abound, and the variety discounter will likely be up for sale again and could see new ownership soon. Further details on how Poundland is currently looking to return to growth can be found in our latest report, The new era of UK variety discounters.

Modella Capital joins list of Poundland suitors

The investment firm, which recently purchased Dealz, Poundland’s sister banner in Poland, and TG Jones, is said to have joined the list of those interested in the auction for Poundland’s operations. No formal bid ahs been made, and further details are expected in the coming weeks.

Senior Insight Analyst, Michela Pearson’s view:

The decision to acquire all the Poundland and Dealz operations follows for Modella Capital, who may bring in an additional restructuring on top of what Gordon Brothers already accomplished in 2025. Further store closures may be in the cards for Poundland’s future.

Morrisons lower prices on essentials 

Morrisons has announced lowered prices across a large amount of essential items to provide lowest-price products compared to Asda, Tesco, Sainsbury’s, Aldi, and Lidl. This push in price competition has been named ‘Unbeatable Prices’ and is featured across 500 weekly essentials to attract more shoppers. The retailer has stated it will use clear signage to highlight the discounted items in stores. The price cuts will also feature on certain fresh lines from the Morrisons Market Street counters.

Analyst, Seth Russell’s view:

Morrisons are trying to beat out the competition when it comes to price. The discounts on essential items will likely act as a way to bring more shoppers into stores to complete their weekly shop, with the retailer likely looking to gain some extra spend from the footfall as shoppers explore and trade-up on trusted brands and impulse purchases.

Morrisons and Sainsbury’s commit to creating job opportunities

This week, Morrisons has announced it will be fully-funding apprenticeship qualifications and leadership training programmes in retail management and leadership. The training will provide on-the-job experience over the course of two years. The programme aims to develop retailing experience alongside preservation of traditional craft skills such as butchery, bakery and fishmongery. Similarly, Sainsbury’s has announced a work experience programme providing 10,000 opportunities for young people to develop skills and gain insight into future career options. The programme looks to move away from a single-day of work experience towards continuous, hands-on experience with employers. The programme will run across the UK, and focus on areas with a higher proportion of schools offering free school meals and young people not in employment, education or training.  

Analyst, Seth Russell’s view:

These two programmes will provide a significant amount of opportunities for young people to build confidence and develop skills from real-world work experience. Both retailers are looking to invest in the next generation of workers and giving them a headstart, a change needed desperately as unemployment concerns continue to increase, particularly amongst young people. The focus on craft skills at Morrisons is also interesting as it breathes new life into skills falling by the wayside, but these skills are essential for the continuation of retail, whether it be at the counters or from further up the supply chain.

M&S opens a larger store in Heathrow T5  

M&S has replaced two smaller pilot units in Heathrow with one large store in Terminal 5. The store is at the entrance to the departure lounge, where there is a significant amount of footfall of passengers heading towards their gates. The store features an M&S bakery counter, providing shoppers with more choice. The new store is part of the retailers convenience growth strategy, looking to expand into travel hubs and expand beyond the usual shopping missions.

Analyst, Seth Russell‘s view:

While M&S continues to expand and refurbish stores landside to improve its position within the UK grocery market, this opening inside of Heathrow airport shows how M&S is willing to explore different areas of retailing. The store will have strong visibility and likely get lots of footfall due to its prime location. The store featuring a bakery counter plays well in airport convenience as travellers will be searching for food-for-now in a convenient location.