Brown & Jackson is likely to junk the 22-year-old Poundstretcher fascia and rebadge the 338-strong discount chain.
Chief executive Angus Monro said a new name will be tested at two stores in the autumn. He would not disclose the options being considered, but there is unlikely to be any pound reference.
'It's the content of the store that matters more than the name,' he said.
'We've made some dramatic changes inside the business and are now asking, should we be calling ourselves something different? The Poundstretcher name does have some negative connotations.' However, he insisted that pricing will not change.
On Wednesday, Poundstretcher posted an interim operating profit of£11.6 million on sales of£153.1 million. Like-for-like sales rose 13 per cent for the seven weeks to February 15.
'Our focus has been on improving our standards in-store and our stock position, and that has given us dividends,' added Monro.