DISCOUNT retailer Poundland, which faces a probe into its takeover of rival 99p Stores, has said its annual sales topped £1 billion for the first time.

The firm, which has 547 UK stores – including branches in Bradford, Keighley and Skipton – and 41 outlets in Ireland, reported a rise in sales of 11.4 per cent to £1.1 billion up for the year to March 29.

It said same store sales lifted by 2.4 per cent during the period, adding that it opened 60 stores in the UK and Ireland as planned.

The group said its full-year sales growth was lower than last year’s 13.3 per cent rise due to strong trading the previous year and fewer stores opening.

Poundland faces a competition probe from the Competition and Markets Authority into its £55million takeover of rival 99p Stores, which could see it having to sell off a clutch of outlets. The planned merger would create a network of 800 shops.

Poundland said it has a strong pipeline of openings for the current financial year and it is on track to meet full-year underlying pre-tax profit forecasts of £43.8 million.

Discount stores such as Poundland, and grocery discounters including Aldi and Lidl have eaten away at the market shares of major grocers, sparking a the ongoing supermarket price war.

Grocery prices are two per cent lower than they were last year, according to the latest 12-week data from research group Kantar Worldpanel.