The latest figures found inflation was running at its highest rate for 40 years – 9.1 per cent.
West Midlands-based Poundland said that as a result it would be leaning more heavily into its iconic £1 price point to help support customers looking to save money.
It will also focus on the value of single items, so customers are freed from having to buy in bulk to save money.
It has been revamping ranges and displays to ensure around 60 per cent of what it sells is £1 or less.
Poundland, which has its headquarters close to the M6 in Walsall, is also accelerating the rollout of chilled and frozen food departments as almost 100 stores are given ‘Project Diamond’ makeovers.
When complete in September, almost half the Poundland chain – more than 350 stores – will offer customers chilled and frozen food, alongside whole new categories such as PEP&CO clothing and homewares.
Poundland has seen strong growth in frozen food sales this year as customers realise the power of frozen food in cutting back on food waste and managing tight budgets that need to stretch to pay increasing energy and fuel costs.
Managing director Barry Williams said: “It’s clear customers are shopping more intentionally and that’s why we’re leaning into our £1 price point.
"While we don’t have a magic trick up our sleeves to counter inflation, we know that those who work hardest to keep costs low will end up winning customers’ trust.
“The promise we make to customers that we can deliver amazing value, has never been more important.
"We’re determined to not let them down.
“That’s why we’re offering more of what they want, at a price that recognises they need their money to work as hard as it can.”