Discount store It's A Pound will open a Kenilworth branch next month.
The Birmingham-based chain is to move into B-Wise, in Warwick Road, when it closes at the end of February - dispelling rumours of Clinton Cards taking over.
It's A Pound spokesman Tony McDonough said: "We are spreading our wings at the moment.
"We have about ten shops and are moving into the outskirts of Birmingham. Kenilworth is a pleasant area, with nice people and plenty of houses.
"It is a difficult town to find the right location - and rents are more expensive than they are in Balsall Common. But they are cheaper than in Leamington.
"We will sell everything we possibly can - all at 1."