UK: Poundland saves 36% costs after renegotiating 180 leases
Discount Variety Retail Chain Poundland (owned by South African Steinhoff International) has 750 stores in the UK and 60 in Ireland under the sister banner Dealz. Poundland has said it renegotiated 180 leases in the two years to the end of September 2020, saving over 36 percent on average. The discount retailer plans to renegotiate hundreds more as leases come up for renewal by September 2024, saving around €20 million in annual costs. Rent remained Poundland’s largest operating cost in the year to September 30, at £101 million. “We are confident that there remains a significant opportunity to renegotiate more favourable lease terms,” Poundland group chief executive Andy Bond said. Poundland has 750 stores in the UK and 60 in Ireland under the sister banner Dealz. A total of 55 percent of the leases were due for renewal by the end of September 2024, “representing a cost reduction opportunity of €20 million”, Poundland said. Poundland has favoured traditional fixed-rent leases but on more flexible terms. “In all situations we will seek to maximise flexibility within the new lease with a short lease commitment and tenant-only break clause within the initial lease period,” Poundland said. Poundland would also consider relocating at every lease expiry, dependent on whether the evolving offer, such as the rollout of frozen and chilled food ranges – still suited the site.
See here for more: https://www.retailgazette.co.uk/blog/2021/03/poundland-saves-36-on-costs-after-renegotiating-180-leases/