A DISCOUNT store is set to close in the heart of a Hampshire town – and be replaced by a new shop selling goods for a penny more.

Totton’s 99p store is preparing to shut – and rivals Poundland will move in to their premises in time to open its doors next weekend.

Staff currently working at the store say they have been made aware of the closure but told they will keep their jobs in the takeover.

It comes just weeks after Poundland replaced a 99p store in Shirley Road and celebrated with a grand opening.

As previously reported, Poundland received clearance from the Competition and Markets Authority earlier this year for a national takeover of their competitor as part of a £55million deal.

The retail giant is set to move into the premises in Comercial Road, Totton and opening on Saturday.

David Harrison, ward councillor in Totton, said: “I am under the impression that Poundland will be taking over the 99p store so it will be much the same shop with a different badge except that it will be a pound rather than a 99p.

“If it means we have still got a store in Totton like that then I am very happy.”

“The fact that the 99p store has been so successful shows there is a need for those kinds of shops and it is part of the all round offering of shops that Totton provides.”

Cllr Louise Cerasoli, a Conservative councillor for Totton Central, said: “At the end of the day they are really the same shop except one is a pound and the other is 99p. As long as the staff keep their jobs then that is great.”

To celebrate its opening, Poundland has announced that the first 100 customers in the new store on Saturday will receive a free £5 voucher.