Poundland East Dulwich soon to be replaced by Tesco Express

[Sue]

On 12/06/2025 at 17:56, Kathleen Olander said:

It's a notice about a licence, but the only name on it is Poundland.

The notice on Poundland's door is dated February 2024.

[researcher]

On 26/05/2025 at 20:22, Insuflo said:

The application in Tesco’s name is on the council’s website dated 23rd May. I’m presuming Tesco couldn’t make an application for a property they don’t already control?   

I think that presumption's a false one and that there's no such requirement.  If in doubt try asking 'Who can make a planning application?'   So it's firm evidence at most of just their belief that they might be  setting up shop there.  Putting in an early anticipatory application for their display signage, to lessen any dead time waiting for the permission, might well be a worthwhile expense.  They don't seem to have withdrawn the application, so are at least presumably still interested in taking over the premises.

[Guest]

14 hours ago, Sue said:

The notice on Poundland's door is dated February 2024.

And this thread was started in May 2025, I don't understand the relevance?  Is it a different notice then?

[Sue]

2 hours ago, Kathleen Olander said:

And this thread was started in May 2025, I don't understand the relevance?  Is it a different notice then?

No, I thought someone on here was saying it was relevant to the Tesco planning application, and all I meant was that apart from Tesco not being mentioned on the notice, the date on it was over a year ago.

[Guest]

28 minutes ago, Sue said:

No, I thought someone on here was saying it was relevant to the Tesco planning application, and all I meant was that apart from Tesco not being mentioned on the notice, the date on it was over a year ago.

I see what you mean.  Perhaps the "alcohol licensing flyer for Tesco Express on the Poundland site" confirmed by the OP has been removed then.

 

[Insuflo]

16 hours ago, researcher said:

I think that presumption's a false one and that there's no such requirement.  If in doubt try asking 'Who can make a planning application?'   

I see. But as I read it, Tesco would still need the agreement of the owners/ leaseholder to submit proposals, so would need Poundland’s cooperation?

I suppose we’ll have to wait while this plays out. There’s applications re this site on the Southwark planning portal dating back over 70 years. In 1954, Woolworth’s applied to convert the original 4 shops here (Nos 29-35) into one Woolies but the council refused because the flats above the shops would be lost and there was a local housing shortage following the war.

Small businesses being displaced by big chains on Lordship Lane was already a trend back then.

 

[LurkyMcLurker]

4 hours ago, Insuflo said:

I see. But as I read it, Tesco would still need the agreement of the owners/ leaseholder to submit proposals, so would need Poundland’s cooperation?

 

What's probably happened here is an assignment of Poundland's lease. This means that Tesco would purchase the remaining terms of Poundland's lease from Poundland. It could be contingent on the council approving the plans for the signage change and ATM. The landlord would be happy because then a stronger tenant moves into their space. Poundland gets a bit of cash in the form of a premium. Tesco gets a fully baked lease to take over. 

Companies don't submit these plans unless it was going to happen. It takes time and money to draw up these plans, and if you review them you'll see the drawings of the frontage are clearly 29-35 Lordship Lane. Meaning someone had surveyed the space and drawn up plans based on the specific property. 

[Toms1]

Just what London, needs another Tesco Express! 

[CPR Dave]

I agree with Lurky's analysis.

No doubt Poundland have been in discussions with the Landlord about ending hte lease early or renegotiating it (given the broader group's position) and so the Landlord has sought a new tenant who would need licences and possibly planning for new signage to be approved before signing a new lease.

[Insuflo]

45 minutes ago, LurkyMcLurker said:

What's probably happened here is an assignment of Poundland's lease.

That all makes sense, actually.

[Insuflo]

It’s being reported that Poundland has written to all its landlords stating that they will stop paying rent until all leases can be renegotiated at a lower rate. 

[teddyboy23]

21 minutes ago, Insuflo said:

It’s being reported that Poundland has written to all its landlords stating that they will stop paying rent until all leases can be renegotiated at a lower rate. 

There's a bit more on bbc text.about shutting 68 shops straight away .including 2 distribution wharehouses

Edited June 17 by teddyboy23

[CPR Dave]

Happened a lot in covid woth lots of hospitality businesses. 

I think they had more leverage then 

[Sue]

4 hours ago, Insuflo said:

It’s being reported that Poundland has written to all its landlords stating that they will stop paying rent until all leases can be renegotiated at a lower rate. 

😮

That seems a very strange way of going about things.

Who is reporting it? Is it based on any actual facts?!

4 hours ago, teddyboy23 said:

There's a bit more on bbc text.about shutting 68 shops straight away .including 2 distribution wharehouses

Do you have a link?

[teddyboy23]

9 hours ago, Sue said:

😮

That seems a very strange way of going about things.

Who is reporting it? Is it based on any actual facts?!

Do you have a link?

Google poundland store closures👍

[Sue]

2 hours ago, teddyboy23 said:

Google poundland store closures👍

In case anybody else can't be bothered to Google, here's a link 😀

https://www.theguardian.com/business/2025/jun/17/poundland-shut-68-stores-restructuring-jobs-gordon-brothers?CMP=Share_AndroidApp_Other

[AP Garden Services]

Just spoke to staff and they said it's closing in November

[CPR Dave]

 

Quote

That seems a very strange way of going about things.

It's quite normal with chain shops that have a large real estate portfolio who are in the proverbial.

When the writing is on the wall they know exactly how much they can afford to pay to keep a site open and the landlord then has a choice:  accept the lower rent or find a new tenant. Finding a new tenant sometimes means not getting any rent from an insolvent company, paying to clear their stuff out and giving the new tenant a rent free period to fit out their shop and establish themselves. It can be expensive for the landlord to refuse a rent reduction.

I think this landlord has probably landed on their feet here though, getting Tesco interested. 

[Shaggy]

On 17/06/2025 at 20:44, Sue said:

😮

That seems a very strange way of going about things.

Who is reporting it? Is it based on any actual facts?!

Do you have a link?

No. It isn’t a strange way of going about things it is absolutely normal. 

This is part of a negation with landlords before a scheme of arrangement imposes terms over their heads later this summer. 

And it doesn’t really mean that Tesco is actually coming either. 

[Sue]

20 minutes ago, Shaggy said:

No. It isn’t a strange way of going about things it is absolutely normal. 

This is part of a negation with landlords before a scheme of arrangement imposes terms over their heads later this summer. 

And it doesn’t really mean that Tesco is actually coming either. 

Well it may be normal, but it sounds more like blackmail to me, stating that you will stop paying rent unless leases are renegotiated (sic).

An individual renting a residential property surely wouldn't be able to do this if they were in financial difficulties (at least, surely not without legal consequences?) so why should it be acceptable in a business environment?

It seems morally wrong to me, but what would I know. I'm sure there must be relevant things I'm not aware of.

[Insuflo]

If you owe the bank £100, you’ve got a problem.

If you owe the bank £100 million, then the bank’s got a problem.

It’s the same principle.

[Shaggy]

On 19/06/2025 at 08:26, Sue said:

It seems morally wrong to me, but what would I know. I'm sure there must be relevant things I'm not aware of.

It’s not great, but this only happens when a business is in trouble and is facing bankruptcy. The landlords are free to say no. The restructuring will often then have to be approved by a High Court judge, so it’s not a total gun-to-the head.

It does upset landlords quite a bit though, because if the business does go under, they’ll likely not see any pay out. So they often feel under pressure to comply. 

[Dogkennelhillbilly]

The tenant's business has already failed. If the landlord doesn't accept it, they can have a vacant property, stand in the queue of creditors, and get paid little or nothing. It's a gamble that the restructuring will work and the tenant will start paying rent again. Commercial properties are often hard to let. 🤷

[Insuflo]

It does seem a common business strategy these days. River Island has just announced a similar restructuring: closing 33 shops and demanding that the landlords of a further 71 locations take a haircut. 

[Sue]

https://www.theguardian.com/business/2025/jun/21/not-an-attractive-place-to-shop-how-poundland-lost-its-appeal-to-shoppers?CMP=Share_AndroidApp_Other