99p Stores has launched a bargain broadband service costing consumers 99p a week as it aims to become a “mainstream” retailer by diversifying its offer.

The single-price-point retailer has teamed up with Home Telecom to provide customers with the internet service, which costs 99p per week, or £4.29 per month for the first six months.

Customers will be able to access unlimited downloads, speeds of up to 24MB and free UK-based support. Local calls will be charged at 2.5p and calls to mobiles will cost 10p with no connection charges or setup fees, making it one of the cheapest deals on the market.

After the first six months the service is charged at £8.50 per month.

99p Stores chief operating officer Tony Brown told Retail Week: “The single price point market has become mainstream and therefore we are developing concepts and services that connect with the mainstream customer. Now, with our partnership with Home Telecom we can broaden our offer. We will keep innovating from a product point of view to meet expectations of our customers. ”

It comes as UK consumers increasingly visit value retailers as part of their regular shopping trips.

99p Stores is currently in the midst of a three-year strategy to ‘professionalise’ the value retailer. It is refitting existing stores, growing its estate and improving customer service.

It recently launched a bakery and a take-away coffee service in its Northampton store, which it plans to roll out to further shops as it aims to differentiate itself from its rivals Poundland and Poundworld, while attempting to change the way customers think about traditional pound shops.

“Our customers have broadened their expectations and demand quality, freshness and choice. We are the only single price point retailer to bring the bakery and coffee to our stores, and combined with our new broadband at 99p stores we literally have everything under one roof,” Brown added.