Sainsbury's moves in (From Gazette Series)

Sainsbury's moves in

SAINSBURY'S has been chosen as the preferred developer for Dursley's new supermarket, the Gazette can reveal.

It was announced this week that the UK's third largest supermarket chain will build a new 20,000 sq ft store on Castle Street, subject to planning permission.

Stroud District Council's cabinet was expected to approve the deal at a meeting last night and instruct lawyers to draw up contracts.

Funds from the agreement will go towards building a new fire station in Dursley, a youth centre and sports facilities at Rednock School.

Jamie Cowen, development surveyor for Sainsbury's, said: "We are looking forward to opening up right in the centre of Dursley.

"It is an excellent opportunity for us and we hope that people in the local area will be excited by the choice, quality and value that Sainsbury's offers."

Sainsbury's bid to redevelop the Castle Street site came after it was remarketed last year. The process had been sensationally delayed when Tesco pulled out of a deal after agreeing to buy the Co-op in Cam instead.

The announcement coincides with new quarterly figures released this week which reveal Sainsbury's sales have increased by 5.3 percent. Market analysts expect the store, which has revelled in successful campaigns by celebrity chef Jamie Oliver, to overtake Asda and reclaim the number two supermarket slot behind Tesco.

Cllr Chas Fellows, leader of Stroud District Council, said: "This regeneration project has taken a great deal of perseverance over a long period of time and we are delighted that we are now in a position to proceed not only with a supermarket but with a whole range of other facilities which are new or improved for the town.

"The benefits for both Dursley and its surrounding communities will be immense."

Stroud District Council, Gloucestershire County Council and Stroud College were all involved in putting the "complex" deal together. All parties expect the new superstore to open in 2008.

Nigel Studdert-Kennedy, district council cabinet member for regeneration, said: "The council is looking forward to working with Sainsbury's to bring about this huge step forward for the town.

"For the first time, local people will have a real choice. Perhaps more importantly, it will bring huge benefits to the town itself. More people will be attracted to the town centre and this is bound to be good for the small shops."

See next week's Gazette for reaction to the announcement.