Budget retailers operating at the very bottom of the market are set for rapid growth as more middle-class shoppers cast aside their prejudices and go rummaging for bargains in the recession.

The sales of discount stores selling general merchandise – such as Poundland, Wilkinson and 99p Stores – are set to be worth more than £4bn by 2012, according to a report released today by PwC. In 2008 the market was worth a little less than £3bn.