Poundland Group PLC (LSE:PLND) vowed to increase the number of products it sells for a pound as customer numbers rise with squeezed households hunting for bargains.
Approximately half of the retailer’s products are worth a pound or less, with that set to be hiked to 60% by the end of the week.
The discounter reported a 5-10% rise in customer numbers compared with this time last year as retailers battle for market share.
Barry Williams, Poundland managing director, commented: "I think you're seeing a shift, a flight to value, if you like, from the traditional grocers, the major multiples, into the discount channel where we operate.
“Most discounters are performing better at the moment."
Supermarkets Tesco PLC (LSE:TSCO) and Asda have reported in recent times that customers are spending less at the till.
Last week, Asda mentioned that several shoppers are asking cashiers to stop scanning at £30 to cut back on costs (read more).
Williams confirmed this by saying there is a “definite dynamic” of shoppers shifting to discounters from major supermarkets.