Poundstretcher has cut 1,000 staff members due to a big drop in full-year profits.

According to the company’s latest annual accounts, its retail workforce decreased from 4,645 employees to 3,640 during the period ending on March 31, 2022.

The discount retailer faced a challenging year, with sales dropping by 16 percent to £273 million, and pre-tax profits plunging from £88 million to £11.7 million.

Read More: Thousands of Poundstretcher staff to be given 10 percent pay rise

Poundstretcher blamed the difficulties to the national shortage of lorry drivers and global container shortages, which affected its ability to maintain sufficient stock levels.

As a result, stock shortages were experienced across the company’s stores, leading to losses in the first half of the 2022-23 period.

To resolve the issues, Poundstretcher reduced its level of promotional activities and returned to a more normalized margin position.

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Earlier this month, it was revealed that Poundstretcher’s chief executive, Derek Lawlor, had departed the company after less than a year. The owner, Aziz Tayub, disclosed plans to float the business either this year or next.

Additionally, Poundstretcher closed 17 of its 371 stores during the previous financial year.

These developments highlight the challenges faced by Poundstretcher in an increasingly competitive retail landscape, compounded by external factors such as supply chain disruptions and the need to adapt to changing consumer behaviors.

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