Poundland founder Dave Dodd is to open the first store for his latest venture in Telford.

Hub, which promises “variety, quality and value in a contemporary environment” aims to plug the variety store gap left by the demise of Woolworths. The 10,000 sq ft Telford store will open in a former Woolworths on New Street at the end of August.

Dodd, who founded Poundland in 1990 then left the business in 2006 - although he had a share until it was sold this year by Advent to Warburg Pincus for £200m - wants to open a further eight Hub shops in its first year, 10 in the second and a further 12 in its third year.

He plans for it to grow into a chain of 200 shops and be a general merchandise equivalent to TK Maxx.

The store’s mix of products will include homewares, hardware, kitchenware, electricals, toys and confectionery. It will sell branded goods, but aims to sell own-brands as the business develops.

The move follows rival 99p Stores launching variety chain Family Bargains. Buying director Faisal Lalani said the retailer wanted to offer a larger range of products - up to £10 - so Family Bargains offers a “lot more possibilities”. The first shop opened in June in Carmarthen, Wales.