Poundland has undercut the multiples with a deal to sell 1.5kg of Whitworths granulated sugar for £1.

The average price of a kilo of own-label sugar in the multiples is currently 93p, according to Grocer 33 data for 17 February.

Poundland is also offering 10 medium eggs for £1, claiming the average pack of six costs £1.36 in supermarkets. And it is selling two litres of semi-skimmed milk for £1 at some stores and hopes to roll this out to the rest of its estate.

The latest deals were evidence producers were taking the single-price discount channel seriously by producing pack sizes specifically for it, Poundland CEO Jim McCarthy claimed.

"This is the first time we have sold these products and customers are telling us they want more deals like this, so you can expect to see Poundland selling more basic foods in the future," he said. "Food and drink accounts for about one in 10 of our lines."