Poundland

Executive summary:

• Reconomy Connect manages all waste arisings at 800+ Poundland stores in the UK and Ireland
• Substantial cost savings achieved by partnering with Poundland’s distribution centres on rebate, recycling and reuse opportunities
• Reconomy Connect has worked with Poundland and our supply chain to achieve 99.4% landfill diversion
• The partnership has evolved from overseeing waste management requirements to implementing a long-term sustainability roadmap.
• We have supported Poundland in reducing their operational general waste by 27% (from 2019 baseline).

Case Study:

Poundland is one of the UK’s leading discount retailers, providing its customers with a choice of 3,000+ products unpinned by a highly attractive concept of offering most items for only £1 each, representing amazing value for money. Having opened its first store in Burton Upon Trent in 1990, Poundland now operates 800+ UK stores, with a turnover exceeding £1billion per year.

Reconomy Connect has been working with Poundland since 2014, managing each store’s waste collections, segregation processes, environmental compliance, reporting, as well as the provision of waste management equipment such as bailers and compactors. As part of this contract, we also collect and recycle on-demand WEEE items. The Poundland contract was initially managed by resource management consultancy company, Helistrat, before the business was acquired by Reconomy Connect in June 2018, with the contract formally moving over to us in October 2019.

During the contract’s early years, the remit was to deliver a cost-effective waste management service that ran efficiently, compliantly and to budget, whilst Poundland focused elsewhere on its own organic growth and acquisitions. Each store operated a single container (general waste) collection system, the only exceptions being cardboard and clear plastic film, which were segregated and backhauled to the DC for baling and sold on the commodities market.

Though other waste contractors may have been willing to sit back and work to these parameters, Reconomy Connect sought to add value, reduce costs, and minimise store-level waste wherever possible. Regular visits were carried out by Reconomy Connect operatives to deliver training and guidance to Poundland staff, making them aware of their individual waste management responsibilities. An auditing process was also established for any stores requesting extra general waste containers, with visual inspections of bins taking place before requests were granted. If signs of cardboard or clear plastic waste were found, further staff training was first carried out to ensure these materials were correctly segregated. This proactive, value-add approach from Reconomy Connect often prevented the need for any ‘doubling up’ of containers that would have incurred additional costs.

Reconomy Connect has worked tirelessly to change attitudes within Poundland and encourage a more forward thinking and sustainable approach to waste management. When the contract was extended to include Poundland’s network of distribution centres (DCs), we seized the opportunity to fully demonstrate its waste minimisation and cost saving expertise.

As part of the landfill diversion project, Reconomy Connect introduced additional waste streams to be collected at the stores (food waste and mixed recycling). We introduced internal recycling bins for all the stores to use in the canteen and warehouse areas. The new recycling bins were supported with labels and signage, and we developed a project specific “digital store waste management reference guide” to support the store teams to improve recycling and compliance.

At over 350,000 sq. ft. each, Poundland’s distribution centres collectively process all store-collected waste. Reconomy has taken every opportunity to bring about changes in approach at the DCs and deliver meaningful improvements, achieving many notable successes, including:

• Rebates: With store-level space at a premium, Reconomy Connect quickly identified opportunities at the DCs to back haul unwanted store goods that retained an inherent market value, such as metals. Instead of arranging for disposal, once at the DCs these could be bulked and sold on for a rebate, with the money earned used to offset against Poundland’s overall waste disposal costs, delivering substantial savings.
  Reconomy Connect negotiated long term contracted rebate rates linked to the commodities market for the cardboard and plastic film bales. This increased the rebate achieved and secured guaranteed destinations for the material (even when the market had collapsed (2019-2020)).
• Donations: Following a request from Poundland to dispose of unwanted seasonal stock, Reconomy Connect used the DCs to stockpile the stock and instead arranged for much of it to be donated to good causes, having established a network of contacts within charitable organisations. Not only did this provide a more sustainable alternative for Poundland, diverting the stock up the waste hierarchy, it also removed any associated disposal costs.
• Recalls: Reconomy Connect has extended its service offering to Poundland to include management of product recalls, including WEEE waste, together with secure product destruction. This can include products that are faulty, cannot be sold or have become obsolete, which could potentially pose a threat to the integrity of the Poundland brand if not properly dealt with and disposed of compliantly.
• CO2 emissions: Another benefit of utilising the DCs for waste management purposes has been the means to use Poundland’s own vehicles to backhaul waste, as they regularly commute between the DCs and its numerous stores. This has prevented the need for dedicated journeys to transport waste, saving both mileage costs and associated CO2 emissions.
• Rework: Reconomy brand, ASCG, has provided rework solutions – removing, repairing and repackaging stock items and returning to the DC for distribution to the store – avoiding additional waste generated and write-offs. Reconomy Connect has also facilitated in repricing over one million items of clothing.
• Shop refit and contractor waste: Reconomy Connect has assisted in capturing waste from their subcontractors. Working with one of our sister companies, we have been able to provide a competitively priced service directly to the contractors. This has enabled us to provide data on waste that was previously not recorded.
• DRS legislation: Reconomy Connect has engaged with Dealz (Poundland stores in RoI) on DRS legislation. Keeping them abreast of the proposed specification and launch date, whilst actively encouraging the reduction of plastic bottles and cans. Reconomy brands, EcoVend and RLG, have successfully assisted Dealz to establish 60 reverse vending machines. Users receive a voucher as part of the Deposit Return Scheme, providing an initiative to recycle items such as plastic bottles and drinks cans.
• Compliance: Reconomy ‘Comply’ brand, Valpak, supports Poundland from a compliance perspective. Valpak helps Poundland meet the requirements of the Packaging Waste, Waste Electrical and Electronic Equipment WEEE, and Waste Batteries Regulations, by taking on their legal obligation, checking the accuracy of their data and submitting it to the appropriate environment agency.

The next phase of the contract will provide a greater emphasis on minimising general waste and increasing recycling levels. To deliver this, Reconomy Connect has prioritised using local suppliers to better support local economies, reducing both vehicle miles and carbon emissions, as well as enhanced Poundland’s sustainability deliverables.

The contract has now expanded to cover more than 800 stores and DCs. Poundland is now at a point in its waste minimisation journey where it is seeking to invest more time and energy in developing a sustainable business model, and this forms the basis of a newly agreed contract with Reconomy Connect.