TWO supermarket chains are preparing to go head-to-head to win customers in a County Durham town.

On Monday, a multi-million pound Tesco supermarket will open in Chester-le-Street Market Place.

The project has taken the national chain five years from when it applied for planning permission.

The development was put on hold when the Co-op supermarket, situated less than five minutes walk from the new store, applied for a judicial review of the proposal.

The Co-op argued a major food store on the site would threaten its branch with closure.

A public inquiry took place and the plans were referred to the High Court.

But the Co-op application was turned down following a three-hour hearing.

The Tesco store will will be officially opened by BBC Look North weatherman Paul Mooney.

At 10am he will join store manager Matthew Feather in presenting a donation to Durham and Chester-le-Street Carers Support, a group which helps people who care for a spouse or relative.

There will also be £100 of Tesco gift vouchers presented to the first customer through the door at 8am.

The Co-op has reaffirmed its commitment to the town by completing a £250,000 redevelopment of its branch in the nearby St Cuthbert's Walk shopping centre.

Modernisation work on the store, which opened in the early 1990s, has included a new layout, signs and bringing in a larger range of groceries such as wines and spirits.

A spokeswoman for the Co-op said: "We have just completed a major refit for the store, so obviously we're confident that our Chester-le-Street branch will retain its customers.

"We have invested a lot of money in it."

About 200 members of staff will be employed in the Tesco store, which has been built in an area earmarked to be the town's new "civic heart".

Chester-le-Street District Council is planning to revamp the market place, installing artworks and creating an area that will accommodate events such as concerts.

The market place is also in line for an overhaul, with plans to attract more specialist arts and craft stalls and create permanent stands for stallholders.

A Tesco spokesman said the store is of average size and will sell mainly food with some non-food items such as cooking utensils.