Discount retailer Poundland is targeting the fashion industry after announcing it will stock clothing lines at a number of its stores.

The budget shopping group will open more than 150 new Pep&Co concessions in its stores over the next year, including five in Kent.

It expects the move to make it a top 15 clothing retailer by volume alongside the likes of River Island, Topman, Asos and Peacocks.

Its first series of stores to launch Pep&Co “shop-in-shop” outlets before Easter will include Canterbury, Ramsgate, Strood, Westwood Cross shopping centre near Broadstairs and its new store due to open at Dover’s St James’ retail development.

Pep&Co is owned by South African group Steinhoff International, which bought Poundland for £610 million in 2016.

Its prices at start at £1, with 95% of its range costing less than £10.

It already has concessions in a number of Poundland stores, including Crayford, Dartford, Chatham's Pentagon Centre and the Dockside Outlet, Gillingham, Neats Court on Sheppey, and Tonbridge.

Its managing director Adrian Mountford said: “This Christmas we sold over a million more items than we did in our whole first year of trading from standalone stores.

“Thanks to our partnership with Poundland – and now Dealz in the Republic of Ireland - we’re set to double in size over the coming year, helping us to drive economies of scale to keep prices low, helping make Poundland an increasingly popular new fashion destination.”

Poundland’s UK & Ireland managing director Barry Williams said: “Who would have thought 12 months ago that we would make Poundland a must-stop fashion destination?

“Well we’re turning that ambition into reality and by the end of this year, with over 300 ‘shop-in-shop’ fashion stores, we’re set to become a major fashion player.”