Poundland is to open its first stores in Continental Europe with plans for 10 in Spain under the Dealz fascia, Retail Week can reveal.

The openings will make Poundland the first among its UK peers to launch in mainland Europe.

Poundland, which is understood to be seeking an IPO, intends to open the shops during the next two financial years from April.

Poundland chief executive Jim McCarthy said: “We have a very detailed, low-risk and low-cost entry plan and the management strength and capacity, in the UK and in Spain, to execute it well.

“I’m confident that Poundland’s amazing value will quickly resonate with Spanish customers.”

The single-price retailer launched its first overseas store in the Republic of Ireland in 2011. It was profitable in its first year of trading and the retailer now operates 31 Dealz shops in the country.

McCarthy said: “The success of Dealz in the Republic of Ireland was a clear demonstration that we have the capability to generate positive financial returns in new geographies quickly. We have been very careful and thorough in our evaluation of further European expansion opportunities and we are confident that our offer and our model suits the Spanish market well.”

Poundland hopes to learn from the store launches in Spain before opening shops in other overseas territories.