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Poundland is set to close 44 stores, despite being allowed to trade as an essential retailer.
The chain said outlets across the UK will go in to "hibernation" after they close on Saturday, to allow the business to focus on larger stores in consolidated areas.
It follows an 80% drop in footfall since the start of the coronavirus pandemic, after shopping centres and high streets were forced to close their doors.
Where appropriate, colleagues in hibernating stores will be placed on furlough, the company said.
Austin Cooke, Poundland’s retail director said: "We learned valuable lessons during the lockdown in March about how buying patterns change as people stick to government advice to stay at home.
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"Putting a small number of stores into hibernation helps protect them for the long term and focus our attention on the majority of stores that remain open to serve their neighbourhoods.
"We hope this lockdown is short and we can re-open our hibernating stores as quickly as possible and we remain grateful for the vital support schemes available to us that help protect jobs."
Around 800 Poundland stores will remain open, the company said.
First 44 Poundland stores closing down
The following branches will temporarily close their doors from Sunday, January 10.
What counts as an essential retailer?
Businesses across England have been ordered to close in line with new national lockdown measures linked to the new Covid-19 variant.
It means people must stay at home except for essential travel and exercise.
Hairdressers, spas, zoos, hotels, golf courses, cafés and cinemas are now closed until mid-February, as well as gyms and beauty salons.
However, essential retailers such as supermarkets and pharmacies can stay open – as can garden centres and builders merchants.
Places of worship can also open for individual prayer and communal services, but they must obey social distancing rules and people can only attend with household and support bubble members.
Zoos and other animal attractions once again have to close.
Outdoor sports venues including gyms and tennis courts are also now closed until mid-February.
Outdoor team sports will not be permitted.
What are your thoughts on the latest lockdown? Let us know in the comments section below
But what businesses are allowed to stay open?
- Food shops including off-licences, supermarkets, pharmacies, garden centres, building merchants and suppliers of building products
- Market stalls selling essential items
- Repair stores
- Petrol stations, automatic car washes, vehicle repair and MOT services, bicycle shops, and taxi and vehicle hire businesses
- Banks, building societies, post offices, short-term loan providers and money transfer businesses
- Funeral directors
- Laundrettes and dry cleaners
- Medical and dental services
- Vets and pet shops
- Animal rescue centres, boarding facilities and animal groomers
- Agricultural supplies shops
- Mobility and disability support shops
- Storage and distribution facilities
- Car parks, public toilets and motorway service areas
- Outdoor playgrounds
- Outdoor parts of botanical gardens and heritage sites for exercise
- Places of worship
- Crematoriums and burial grounds
"It's clear that we need to do more together to bring this variant under control while our vaccines are rolled out," Boris Johnson said, announcing the measures on Tuesday.
The latest lockdown will see more than 550,000 business closures in England, according to real estate adviser Altus Group.
The company said this included 401,690 non-essential shops, 64,537 pubs or restaurants, 20,703 personal care facilities and 7,051 gyms or leisure centres.