Discount Retailer Adapts to Challenging Times
- Poundland to temporarily close 32 UK stores due to Covid-19 outbreak
- Employees will receive 80% of their average earnings through the government’s Jobs Retention Scheme
- Stores will only be closed under specific conditions
- Usdaw is in negotiations with Poundland for topping up the Government scheme
Discount retailer Poundland has announced the temporary closure of 32 of its stores in the UK due to the Covid-19 outbreak. The company will follow specific conditions before closing a store, such as if it is located in a retail or shopping center and instructed by its landlord, if there are multiple stores in the same area, and if there aren’t enough staff members available. Employees affected by these closures will receive 80% of their average earnings through the government’s Jobs Retention Scheme. Shop workers’ trade union Usdaw is in negotiations with Poundland to top up the Government scheme to ensure no loss of income for furloughed employees. Last month, Poundland reported a 1.3% increase in like-for-like sales for the three-month period ended 23 December 2019 and a ‘record trading day’ on 23 December, serving almost 1.6 million customers, benefiting from the continued strong performance of the Pep and Co clothing brand now present in 301 UK and Republic of Ireland stores.
Factuality Level: 8
Factuality Justification: The article provides accurate information about Poundland’s decision to temporarily close 32 stores due to the Covid-19 outbreak and its impact on employees. It also mentions the government’s Jobs Retention Scheme and negotiations with the trade union Usdaw for additional support for workers. The article includes relevant details about the store closure criteria and Poundland’s recent sales performance.
Noise Level: 4
Noise Justification: The article provides relevant information about Poundland’s decision to temporarily close some stores due to the Covid-19 outbreak and its impact on employees. It also mentions the government’s Jobs Retention Scheme and negotiations with the trade union Usdaw. However, it lacks in-depth analysis or exploration of long-term trends or consequences.
Financial Relevance: Yes
Financial Markets Impacted: Poundland’s decision to close 32 stores and furlough employees may impact its stock price and overall financial performance.
Financial Rating Justification: The article discusses Poundland’s decision to temporarily close stores and furlough employees due to the COVID-19 outbreak, which could affect the company’s financial situation and potentially impact its stock price or partnership with landlords. It also mentions the company’s sales performance, which is relevant to its financial status.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the text, but the article discusses the impact of Covid-19 virus outbreak on Poundland’s operations and staff.
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