POUNDLAND is set to buy rival 99p Stores in a deal worth £55m.

99p Stores has 251 shops and recently opened a new branch at Mallard Road Retail Park in Bournemouth – its fifth in the conurbation.

Its chief operating officer is Tony Brown, former chief executive of Beales.

Poundland has branches in Poole, Bournemouth and Boscombe, and was floated on the stock market last year.

It has offered a cash and shares deal totalling £55m for 99p Stores, which was founded 14 years ago.

99p Stores’ annual sales were £370.4m in the year to February 1 last year and underlying earnings were £6.1m.

Poundland chief executive Jim McCarthy said: “This is a good deal for both businesses and will benefit customers and shareholders.

“Through working together, Poundland will improve choice, value and service for 99p Stores’ customers, bringing Poundland’s know-how and range to 99p Stores.”

Tony Brown recently told the Echo that ‘value end’ retailers were now at the heart of the nation’s shopping habits.

“I think 2008 kick-started everything and now the value end retailers are the norm, they’re mainstream,” he said.