Discount retailer Poundland is set to open 500 new UK stores and expand into mainland Europe over the next 18 months.
The decision to double its number of UK stores comes after they announced record total sales of £880 million for the 52 weeks ending 31 March.
Poundland, which is chaired by former Tesco finance director Andrew Higginson, is also likely to head for a London flotation next year in the wake of a strong 15% rise in sales.
Chief Executive Jim McCarthy said Poundland's sales were lifted by shoppers looking for "amazing value" on every day essentials including health and beauty household goods, as well as food.
He added that, while there were emerging signs of a rise in consumer confidence, Poundland would continue to do well. "The consumer is much better informed now and used to being savvy and careful with their money. I genuinely believe that the consumer has changed forever," he told The Guardian.
He declined to comment on whether Poundland would seek a market listing, but the company's private equity owner Warburg Pincus is expected to make a move as the retailer has halved its net borrowings to £12.1m in the past year and its Ireland success has shown it has the potential to expand outside the UK.
