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A new high street chain where everything costs a fiver has revealed ambitious plans to expand.

The newly launched Five Pound World discount chain aims to open 150 stores within the next 18 months, it emerged today.

Trade magazine The Grocer says Five Pound World is aiming to succeed where Poundworld failed by raising the single-price to a fiver.

The store opened its first branch in a former Poundworld brand in Burton-on-Trent, Staffs, last week and two more are due to open this month, in Derby and London’s Walthamstow.

(Image: DerbyshireLive/ WS)

Poundworld collapsed in June with the loss of 5,000 jobs and 335 stores.

Five Pound World is the brainchild of businessman Dev Singh, managing director of Opium Group. Everything costs £5 with plans to also sell cheaper products in multiples at the same price point.

The budget brand is set to go head-to-head with competitors such as B&M by opening other shops across the country.

It will rent spaces that have been left vacant by Poundworld, which went into administration earlier this year.

The collapse of Poundworld was a major blow to the high street. Other big name casualties this year include Homebase, Toys R Us and Maplin.

Boss Mr Singh has recruited former Poundworld staff, including one of its regional bosses, an operational director and store development manager, to help run the new venture.

(Image: DerbyshireLive/ WS)

The range currently consists of only “general merchandise” and homeware but industry insiders say the existing range is only a quarter of that planned, with food and other fast-moving consumer goods to be added in “multibuy” deals.

In one example of multi-buy deals, four bottles of Domestos bleach will cost £5. But the retailer also plans to let customers mix and match so they can choose a Domestos bottle along with other items, bringing the price to £5.

The Grocer says the hope is that raising the single price point will help Five Pound World escape some of the pressure on pound shop margins from the devaluation of sterling.

One insider said: “The pound is dead. Five pounds is the new pound.”