TRADERS say that traffic chaos around a new supermarket site is costing them thousands of pounds in lost business.

Sales at one Bishop Auckland tile shop have dropped by £33,000 over the past three months while contractors have been working on the town's new Asda store, at the south end of Newgate Street.

The company says the development will bring extra customers into neighbouring shops after it opens on November 11.

But Tile Distributors boss Jeffrey Ruggles fears he and other traders will never recoup the lost business.

He said yesterday: "There are so many people working on the site it is impossible to get near.

"There are cars parked all day blocking the way into my shop and customers are just not coming.

"I spend most of my day asking the contractors to move, but they come back. There are diggers and heavy machines going in and out all the time and people aren't going to come anywhere near with their cars.

"I worked out this morning that I have lost much more than I feared. Business is down by £33,000 over the past 12 weeks. It is affecting everybody around here."

Asda is creating 230 jobs at the 40,000sq ft development, which replaces a smaller store in the Newgate Centre.

The controversial project was only given the go-ahead after a lengthy public inquiry and opinion is split among existing traders about the benefits it will bring to the town.

A company spokesperson said yesterday: "Asda and our contractors are committed to working with traders to resolve any issues caused by the construction of the new store.

"We have an established dialogue and will continue to do everything we can to help and resolve issues as they arise.

"We are confident that the long-term benefits of the store, which is due to open very shortly, will far outweigh the short term inconvenience.

"It will bring a lot of people to that end of the town centre who will never have been there before."