Poundstretcher is hoping to change its image from that of an inexpensive retailer to a more aspirational chain that offers real value for money.
The retailer, which spent £1.5 million last year, is planning a number of TV campaigns to promote its repositioning. This will include heavyweight Christmas and Easter campaigns, which the company claims will be supported by an increased media spend of £5 million.
Angus Monro, the chief executive at Poundstretcher and a former chief executive of Matalan, has ambitious plans for the Poundstretcher brand.
His move in 2002 was followed by the appointment of Matalan's head of marketing, Mike Morrison, last year, who is now the marketing director.
Morrison aims to increase brand awareness and almost double the number of outlets from 330 over the next five years.
Poundstretcher is set to revamp its current visual identity following the restructure of its parent company, Brown & Jackson, last August, when it sold off all store chains except Poundstretcher. The national relaunch is planned for 2004.
The media planning and buying account will continue to be handled by Brilliant Media, which has held the business since last year.
Tim Delaney, the chairman of Leagas Delaney, said: "The team at Poundstretcher has been incredibly successful in its previous business and there is no doubt that it will be equally so this time. Naturally, we are delighted to be on what will be an exciting journey with it."