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Retail

Poundstretcher considering buying Wilko stores

Poundstretcher, the discount retail chain, is reportedly eyeing former Wilko locations across the UK as part of its expansion strategy.

Following the collapse of Wilko, the rival discounter, which is owned by Instore Limited, is considering several of the vacant sites, with a particular focus on the southeast of England.

Wilko, which recently faced insolvency, is in the process of closing all its unsold stores by 8 October, resulting in over 10,000 job losses.

Poundland Group PLC (LSE:PLND) and B&M European Value Retail SA (LSE:BME) were among the retailers that made last-minute deals to acquire a significant number of Wilko's stores, with Poundland taking 71 and B&M taking 51.

However, approximately 200 Wilko stores remain unallocated as administrators work through the final stages of the process and with several other major retailers, including Dunelm, Lidl, and Aldi, also expressing interest in taking over some of these vacant units.

An investigation by PwC, Wilko’s administrator, was launched last week to examine how there is a shortfall of £56 million in its workers’ pension fund despite £77 million in dividends being dished out to its owners over the last decade.

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