MARKS & Spencer is to open the first of a new chain of home furnishing superstores in the region.

On the day it was announced Luc Vandevelde, the Belgian chief of the company was to relinquish his role as chief executive, it also emerged the chain is expected to create more than 100 new jobs in the North-East.

The new store will go head to head with Ikea when it is opened at the MetroCentre at Gateshead in around 18 months time.

It is understood M&S paid £20m to the landowners of the site, the Church Commissioners of England.

The site is eight acres and planning permission has already been secured.

The new store will sell everything from furniture and ornaments to carpets.

It will be the first store of its kind for M&S, although the company is looking for a site for a second. The store already in place at the MetroCentre will continue in its present role.

The Church Commissioners were represented by property consultants King Sturge.

Jonathan Sykes, partner in charge of the Newcastle office, said they had received 45 expressions of interest in the site. Neither M&S or King Sturge would comment on how much had been paid for the site or how many jobs would be created.

Mr Vandevelde, who is also chairman of the company, is widely credited for turning around M&S's fortunes after years of falling sales and profits.

Yesterday the retailer said the chief executive role would now be taken over by Roger Holmes, currently managing director of the company's UK retail operations, while Mr Vandevelde would stay on as chairman.