The advert, which will air on ITV this evening, cost £65,000 to make – in stark contrast with John Lewis’ £7m epic.
It’s the second year that the value retailer has launched a TV advertising campaign for the festive season.
Marketing director Mark Pym said: “This is how Poundland do Christmas; real customers talking about real products on the high street with real reactions.
“We like to keep things really simple. We don’t need to spend millions to give savvy shoppers a break from reality, create extra merchandise or use mumbo jumbo language to explain our ads.”