UK budget retail sales are booming, aided by millions of new customers trying to stretch their cash further, according to Nielsen.

Revenues of UK budget retailers have soared by nearly 20 per cent to £4.9 billion, according to a report from market research house Nielsen.

Sales by Poundland and B&M surged 17 per cent in the year to July as more than 2.2 million households bought from a value retailer for the first time. Some 52 per cent of them shopped at Poundland and 75 per cent of households regularly shop at Lidl or Aldi.

Nielsen says fresh produce is the fastest-growing category in budget retailing.

Mike Watkins, UK head of retailer insight with Nielsen, says more and more Britons are buying goods at budget stores which they previously bought at mainstream supermarkets.

“People are starting to visit for their regular grocery staples and more experienced bargain store shoppers are becoming interested in adding fresh produce to their repertoire,” he said.

“This is similar to what we saw some years ago with Aldi and Lidl, who initially attracted shoppers with special buys for non-food items and low prices on groceries.”