The number of pound shops has risen by 60% over the past two years.

The number of discount retailers in the UK such as Poundland and 99p Stores have increased by 60% during the last two years according to the British Property Federation (BPF).

The research was conducted by the Local Data Company on behalf of BPF, and found that such companies have grown considerably over the past few years, with just under half of the 1,423 discount stores across Great Britain in London and the South East.

Regions with the most discount shops include Greater London (357 outlets), the South East (250), Yorkshire & The Humber (137) and the North West (135) – and for every one discount retailer that closes, two have opened.

The stores are also attracting a much wider customer base – pound shops are for posh people too it appears. Poundland, for example, has seen a 22% increase in the numbers of shoppers from the richer AB group, whereas traditionally, their target market has been driven by females in the C2, D and E socio-economic groups.

The change has occurred because discount retailers have moved into more affluent areas such as Cambridge, Oxford, Stratford-upon-Avon, Royal Tunbridge Wells and Lymington.

Liz Peace, Chief Executive of the BPF, said: “Whatever opinions people may have about pound stores, they are growing in popularity and more importantly, generate jobs and footfall that benefits other retailers on the high street. This is good for landlords who would much rather have a discount retailer than an empty store, particularly as Gordon Brown is continuing to hurt businesses by making them pay full business rates on empty space.

“The rise has also been fuelled by the demise of Woolworths leaving more prime spots available. Some of our biggest members including British Land, Land Securities, Prupim, St Modwen and Westfield all have pound store tenants.

“The increase in discount stores represents a marked change in the psychology of shoppers. Rather than shopping for a particular good or commodity, people are going out with a set sum of cash knowing that they will be able to get a specific number of items. And in practice they often end up buying more.”