Items on sale in Poundland are sometimes up to 50 per cent more expensive than those sold in supermarkets , new research has shown . The budget retailer last week announced that sales exceed £1billion for the first time last year becoming Europe 's largest single-price discount retailer . The company 's success has been put down to shoppers hunting bargains and taking sales away from Britain 's four big supermarkets , Asda , Tesco , Sainsburys and Morrisons . Scroll down for video . New research has found that certain items on sale at Poundland , pictured , are up to 50 per cent more expensive than those sold in supermarkets . But according to research in the Sunday Times , shoppers in Poundland are being charged more per unit of certain products compared with bigger retailers . The research points out that at Poundland shoppers can buy a 250g box of Kellogs Cornflakes for £1 , while at Tesco they can buy a 750g box of the cereal for the same price . A bag of Galaxy Minstrels with a weight of 105g also costs £1 in the shop but a bigger bag at at 153g can be purchased in Asda for 98p . Equally two pints of mile cost £1 in Poundland , but shoppers can get four pints in Asda for 89p . Also a pack of six Tunnocks Tea Cakes is 81p in Tesco , compared to £1 in the budget brand . Originally founded by entrepreneur Steve Smith in 1990 , the company snowballed from a small private enterprise into a High Street revolution , which involves buying up unwanted stock and end-of-lines , then swiftly getting them into the shops to sell cheaply . However , the research does point out that there are still many products cheaper at Poundland compared to other supermarkets . These include a Fray Bentos steak and kidney pie , which is £2.20 in Sainsbury 's and a 24 pack of Jaffa Cakes , which are £2.29 in Tesco . However , a spokesman for Poundland told the newspaper : 'We conduct price surveys every two weeks against the supermarkets and we believe we are 40 % cheaper or more against 1,000 branded products . Comparing either supermarket promotions or larger pack sizes with our prices is not a meaningful comparison . Poundland has snowballed from a small private enterprise into a High Street revolution , which involves buying up unwanted stock and end-of-lines ( file picture ) 'Promotions are temporary and with larger pack sizes you have to spend much more to get any better value . On a like-for-like comparison Poundland ’ s value , across our whole range , is compelling . ' The company 's discounting strategy has since been adopted by bargain chains such as Aldi and Lidl , all of which have eaten into a market once dominated by the supermarket chains such as Waitrose , Tesco and Sainsbury 's . Back then , shoppers were beginning to desert the High Street for superstores , but Mr Smith and his Poundland chain - which he sold in 2000 for £50million - were a lifeline that helped keep it afloat . Poundland said it had opened 60 new stores in the UK and Ireland and had a strong pipeline of openings for the new year . Meanwhile the retailer warned on Friday it may walk away from its planned £55 million acquisition of rival 99p Stores rather than be subject to a lengthy probe by the UK competition watchdog . Britain 's Competition and Markets Authority ( CMA ) said last week the agreed deal could result in a substantial lessening of competition and would be subject to a further investigation in the absense of undertakings , such as selling some stores . The company said in a statement : 'Poundland has decided not to offer remedies to the CMA ' , adding it had written to the regulator to request a Phase II review be suspended for three weeks . Such a review could take as long as six months .
Certain products at retailer are more expensive per unit than supermarkets . Comes as Poundland announced sales exceed £1bn for first time last year . Company 's success has been put down to shoppers hunting for bargains .