The store was opened yesterday by celebrity baker Jane Asher at Birmingham’s Corporation Street and will also be creating 42 new jobs.

To celebrate the significant milestone, the discount retailer will also be offering staff and customers the chance to win a new Seat Ibiza when they spend £1 or more in store.

Poundland chief executive Jim McCarthy said: “It’s an honour to celebrate the opening of our 500th store. I strongly believe that our customer base – which has expanded to 5 million every week – keep coming back because we have stayed firmly to the principles established when we opened our first store in 1990; namely helpful and friendly staff offering top brands at amazing value every day. With 21 new store openings during November and December we’re going from strength to strength.”