Poundland has snapped up frozen food retailer Fulton Foods for an undisclosed sum and plans to invest £25m into its grocery offering over the next two years.

Poundland, which has partnered with Fulton Foods over the last year for the launch of its frozen food proposition in 70 of its stores, has acquired the retailer and unveiled plans to launch a frozen and chilled food offer across 500 of its stores.

The move by Poundland will create 1,000 new jobs in stores and at its Barnsley and Harlow distribution centres.

Poundland will retain all of Fulton Foods’ 80 stores and 800 colleagues and the business plans to convert a selection of the frozen food specialists’ shops into Poundland outlets in the coming months. 

Fulton Foods co-owners will remain with the business with Karen Rees appointed as managing director reporting into Poundland managing director Barry Williams and Kevin Gunter staying on in an advisory capacity for the next six months.

Williams said: “We couldn’t have developed our chilled and frozen ranges without Fultons’ expertise and now is the right time to move to the next level and bring the team on board.

“By combining our experience, we can accelerate our frozen and chilled rollout and bring the amazing value it offers to more of our customers across the UK.”

Rees added: “For the last 12 months we’ve been proud to partner with Poundland, but even prouder that today we become family.

“We already know the Poundland customer loves our frozen and chilled foods offer – and we’re excited to know our people will be able to play a bigger part in Poundland’s transformation story”.

This is the latest step in Poundland’s ongoing transformation programme, which has also seen the business roll out its multi-price proposition in all product categories; launch online delivery; pilot to sell beers, wine and spirits in-store; and its ongoing rollout of clothing brand Pep&Co across 310 stores