Poundland

• It now has around 400 stores, but it has also become the latest high street shop to face serious financial troubles.
• It reported losses over the last four years, and closed 15 stores last year after attempts to restructure the business.
• More changes to its business will now be needed, including further store closures and job losses as the company files for administration.
• Combined with the continued growth of internet companies such as Amazon, this competition has left Wilko without a unique selling point.

Retail headwinds

• The coronavirus pandemic certainly did not help the retail sector, but some businesses were more adversely affected than others.
• Government financial assistance, which included business rates relief, tax holidays, and restrictions on landlord’s ability to call rents, provided some temporary relief.
• But once this assistance ended, Wilko was exposed to the post-pandemic world, which has seen its fair share of retail casualties since the start of the pandemic.

Rethinking the future

• Wilko undoubtedly faces a dire situation, but unlike recent retail failures, it does have a future – it could just be in a different form.
• In other cases, the struggling company might reinvent itself, although this requires extensive restructuring, and may only prolong the misery.
• But it could also lead to new initiatives such as developing its online presence further and expanding its delivery options.