Poundland acquires Yorkshire retailer amid plans to create 1,000 jobs

Poundland has bought Fultons Foods, the Yorkshire frozen food retailer, in a move that will create 1,000 full and part time roles through the introduction of chilled and frozen food in Poundland stores and the transformation of Fultons' distribution centre in Barnsley.
Poundland MD Barry Williams with Fultons MD Karen Rees and Fultons chairman Kevin Gunter this morning at Fultons’ base in BarnsleyPoundland MD Barry Williams with Fultons MD Karen Rees and Fultons chairman Kevin Gunter this morning at Fultons’ base in Barnsley
Poundland MD Barry Williams with Fultons MD Karen Rees and Fultons chairman Kevin Gunter this morning at Fultons’ base in Barnsley

The discount retailer has been working closely with Barnsley-based Fultons for 12 months, developing its chilled and frozen food range and building a distribution network to serve stores.

The partnership has enabled Poundland to roll out frozen and chilled foods to more than 70 of its stores. The firm said the acquisition will enable it to significantly extend the offer to another 40-plus stores by December.

Hide Ad
Hide Ad

Pepco Group, the owner of Poundland, plans to invest in widening the customer offer in Poundland while also improving its operational gearing, primarily through reducing the discount retailer’s in-store rents.

It said that these actions will build both sales and profit, as well as creating new jobs in the UK.

Poundland said the acquisition of Fultons will enable it to step up its frozen and chilled rollout.

Alongside extending the range to a further 40-plus stores in 2020, Poundland plans to invest over £25m over the next two years in its chilled and frozen operation.

Hide Ad
Hide Ad

It plans to convert the most appropriate Fultons stores into a full Poundland format, retaining a frozen and chilled offer in each location.

It will also establish Fultons’ Barnsley base as its National Frozen Distribution Centre and build the infrastructure at its Harlow distribution centre to bring its frozen and chilled food offer to stores across the south of England.

Poundland plans to bring its chilled and frozen offer to a further 150 stores in the 2021/22 financial year and to as many as 500 stores over the next two years, making it an increasingly significant player in the £20bn UK chilled and frozen food market.

Both Fultons co-owners will remain involved in the business. Karen Rees will become managing director reporting directly to Poundland's managing director Barry Williams. Kevin Gunter will continue in an advisory role for six months. All 800-plus Fultons colleagues will join the Poundland family this month with no changes to their terms and conditions.

Hide Ad
Hide Ad

As well as investing in stores, Poundland’s transformation plan includes the pilot of new free from ranges and beers, wines, and spirits in selected stores.

Barry Williams, Poundland's managing director, said: “We couldn’t have developed our chilled and frozen ranges without Fultons’ expertise and now is the right time to move to the next level and bring the team on board.

“By combining our experience, we can accelerate our frozen and chilled rollout and bring the amazing value it offers to more of our customers across the UK.”

Fultons’ managing director, Karen Rees, said: “For the last 12 months we’ve been proud to partner with Poundland, but even prouder that today we become family.

Hide Ad
Hide Ad

“We already know the Poundland customer loves our frozen and chilled foods offer – and we’re excited to know our people will be able to play a bigger part in Poundland’s transformation story”.

Fultons’ chairman, Kevin Gunter, said: “After leading the business for 24 years, I’m pleased we’ve been able to agree terms with Poundland who are committed to a renewed period of growth and investment. I’m looking forward to contributing in an advisory role over the next six months."

Jim Whittaker and Rob Umpleby from Grant Thornton Corporate Finance in Leeds acted as financial advisers to the shareholders of Fultons Foods. EMW (Ian Morris and Daisy Divoka) acted as legal advisers.

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.