A LONDON-based discount retailer is looking to include Swindon in its expansion plans.

99p Stores currently has 20 stores across the South East and West Midlands, employing 445 people.

This week the company received about £5 million of roll out funding from Barclays Ventures the equity finance arm of Barclays to allow it to begin its extensive expansion plans.

The firm hopes to open an additional 50 outlets in the next three years and increase its sales from £24 million in 2003 to £150 million by 2006.

"We have been looking at opening a store in the Swindon area for the past three to four months," said Stuart Donnelly, the property director of 99p Stores.

"Swindon is a very strong town and we are looking carefully at various different sites.

"We hope to open a store as soon as possible, probably in the next three to six months."

Mr Donnelly added that such a store would create some 30 new jobs.

Value retailing is one of the fastest growing sub-sectors of the UK retail industry.

It has an estimated market value of some £14 billion and 11,000 stores nationwide.

Currently there are only 400 stores selling things for about a pound across the UK.

99p Stores currently has an average customer basket sale of £4 and it says that more than 70 per cent of its customers return to the store at least once a week.

Mr Donnelly said: "We have a very extensive range of products of unbelievable quality which are on offer in a very comfortable shopping environment.

"As a result, we have a loyal customer base."

The company was established in 2001 by Nadir Lalani, an experienced retailer who previously co-founded Europa Foods Group and Whistlestop Stores.

Current top selling items in its stores include 100-packs of Tetley One Cup Teabags, two-litre bottles of Coca Cola and 32-packs of AA batteries.

New store openings are always accompanied by special offers such as televisions and DVD players for sale at 99p, and generate much interest.

One of the firm's most recent openings in Edmonton, North London saw 3,000 people pass through the doors in one day.

Khilan Dodhia, Investment Director at Barclays Ventures, said: "We expect 99p Stores to be among the market leaders in the high growth value retail segment.

"The business has a compelling and proven concept, supported by a strong management team with a track record of successful deals in the retail industry."

99p Stores offers a wide variety of household, grocery, health and beauty products all at just one price.

There are already a number of similar competing companies in the market.

Swindon itself already has several discount stores, including the Poundland store on Regent Street in the town centre.

Anthony Osborne