Bargain Battle: 98 Pence Shop Opens Across From Poundland

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Chris Ratcliffe / Bloomberg News

A customer looks in the window of a poundland store in Watford, U.K.

If you thought £1 was a bit pricey, you’re in luck. Just head across the street to save a couple of pennies.

In a true testament to our economic plight, the inexpensive goodness found at bargain stores is the hottest deal right now. And in the quest for cheap goods, we’re glad to see the capitalist spirit is still alive.

(READ: Dollar Stores: More Bang for Your Buck)

In Staines, a suburb about 20 miles west of London, the main shopping street is experiencing a battle of the bargain stores. Amarjeet Singh recently opened his “98p+” store where customers can find deals on household goods starting at just 98 pence ($1.55). But some shoppers are taking a scrutinizing eye to his store – after all, just across the street is Poundland, a popular British chain whose items are priced at £1 ($1.58).

The Daily Mail spoke to 98p+ owner Singh, who said, “I know it’s only two pence cheaper for a packet of sponges compared with a pound over the road but in this day and age, we have to watch what we spend.” He’s found that people are choosing his store over the neighboring Poundland simply because of cost. “If they are wanting to buy 10 packets of sponges or 15 mugs at 98 pence each, they can save quite a bit of money,” Singh told the Daily Mail.

As the long-established bargain brand, Poundland is unfazed by the competition. A Poundland manager touted their store’s higher quality goods and reputation. Poundland will almost assuredly keep their prices the same – otherwise, their name would be quite misleading. But the direct challenge from the adjacent store charging two pence fewer does prove that less is more.

Nick Carbone is a reporter at TIME. Find him on Twitter at @nickcarbone. You can also continue the discussion on TIME’s Facebook page and on Twitter at @TIME.

READ: When the Dollar Store Undercuts Walmart