Bargain chain set for New Year expansion

High street chain Poundland plans to open 50 new stores next year and is considering online trading in an expansion fuelled by the recession.

The bargain retailer said increasing numbers of middle-class customers have led to its growth from 263 stores in April to 320 by Christmas.

Chief executive Jim McCarthy said the chain plans to open 50 more stores across the UK in the next financial year and is in discussions about selling homewares, fancy dress and party items over the internet within two years.

Poundland, which began trading in 1990, reported an operating profit of 21.5 million for the 12 months to March, up 81.5 per cent on the previous year, and a sales increase of 29 per cent to 509.8m.