Poundland has warned landlords about the "new realities of retail" as it announced the take over of former Poundworld stores after the rival discount brand collapsed into administration.
Poundland will open in 20 large sites previously occupied by Poundworld in October, in a move that could create more than 400 jobs.
More than 5,000 jobs were lost when 350 Poundworld stores closed down in June. Former Poundworld staff have been offered guaranteed interviews for roles in the new branches.
Poundland managing director Barry Williams said high street landlords must lower their rents to allow expansion as brands struggle with a challenging retail landscape.
“We’re trading strongly and stores with a Pep & Co fashion store are a hit with customers,” Williams said.
“That’s why we’re keen to find larger sites that enable us to bring our widest ranges to more high streets across the country.
“However, we can only do this if landlords really change their expectations about the total cost of occupation to reflect the new realities of UK retail."
Poundland will offer its value fashion brand Pep & Co in eight of the new branches. The first openings will be in Edinburgh, Killingworth, East Kilbride and Ayr.
Frozen food retailer Iceland took over 19 former Poundworld stores in August after rescue deals fell through.