Variety retailer Poundland plans to use its new 200,000 sq ft distribution centre to service Europe when the single-price retailer opens stores on the continent.

Located in Hoddesdon, Herefordshire, the distribution centre, which opened on Wednesday, fulfils stock for its southern stores.

Poundland distribution director Andy Monk said: “If we do go into Europe, which looks likely at some stage, then we would use this distribution centre.

“Then if we are really successful on the continent, we would open a distribution centre there.

“All of our Irish stores are serviced via our midlands centre, so we know we can service from the UK.”

Monk said Poundland is still in the early stages of researching the most appropriate overseas market to launch in. It is already present in Ireland where it operates under its Dealz fascia. Chief executive Jim McCarthy has spoken publicly about Poundland’s interest in opening in Europe under the same fascia in future but has not given a timescale.

The Hoddesdon centre services 72 stores and is capable of supporting up to 160 shops, as Poundland grows its store numbers rapidly, opening around 60 per year.