Signs have gone up in the windows of the former M&Co premises in Bank Street announcing the retailer is moving in.
A spokesman for Poundland said: ‘We very much hope to open a new store in early September in Bank Street.’
It is understood the company has started recruiting staff and up to 15 new jobs could be created.
Chairman of Teignmouth Chamber of Trade and Commerce Keith Underhill said there had been a ‘mixed’ reaction from traders.
He said some roles had been advertised on the company’s website several weeks ago and that the shop unit was being fitted out now.
He said: ‘If you happen to have cheaper stores in a town, this is going to be competition but for the rest of the town, it can bring more people in.
‘The unit is too big for an independent business unless it is split into smaller units and Poundland wants to invest in the town and create employment, I believe up to 15 jobs.’
He said there had been comments about Teignmouth going ‘from Waitrose to Poundland’, a reference to the closure of the up market food retailer.
But Keith said: ‘It’s very much horses for courses and it’s better to have a unit filled than empty.’
The company is refurbishing the premises to include new flooring, ceilings and fixtures and fittings along with external signage.
Concerns have been expressed on social media about the effect on other local businesses, specifically other pound stores.
But some responded that it was better than having and empty shop and was creating jobs.
Another comment was that Teignmouth still had a lot of independent shops and traders which ‘keep the town alive’.
The unit in pedestrianised Bank Street was previously home to clothing retailer M&Co which closed several months ago after going into administration.