DISCOUNT food giant Kwiksave is to build a new flagship store in Runcorn Old Town, creating new jobs.

The announcement has been welcomed by Halton councillors and traders, following months of speculation.

It marks the final phase in a long-awaited multi-million pound redevelopment of the town centre.

Shopkeepers and councillors were gutted 18 months ago, when German food chain Lidl pulled out of a deal just days before they were due to sign.

Kwiksave, part of the Somerfield chain, has confirmed they are now talking to developers about finalising the design details.

A Kwiksave spokesperson said: "We are very pleased with the progress. The new store will replace our existing store in Church Street."

The store is due to open before Christmas.

Cllr Rob Polhill, executive board member for development, said: "I am pleased for the people of Runcorn and traders who have had a bit of a tough time. We would like to thank them for bearing with us.

"This development releases money from the regional development agency for the rest of the funding to complete the project."

The new Kwiksave will be built on part of the existing car park, near the new bus station. Halton Council plans to develop a One Stop Shop. Market traders will move into this building as a temporary measure, whilst a new market is constructed. New retail units are also in the pipeline.

"Hopefully, other retailers will be coming in," said Cllr Polhill. "With the new Halton College campus opening in September and work on the arts centre starting soon, the town is starting to look right. Our priority is to get the town back to some sort of normality."

Liz Howard of Curiosity Bookshop, said: "This is what we were hoping for after the Lidl fiasco. A new store will help everyone and it's good news for all the local residents in the area."