MARKS and Spencer has scrapped a proposed £9m expansion of its Darlington store.
The plans would have seen the Northgate store double in size, and would have created up to 50 new jobs in the town.
But the project was put on hold in November 1998, when the store chain announced cutbacks in expansions and said it would not reconsider the proposals until 2001.
A spokeswoman yesterday confirmed that, because of a reshaping of the group's strategy, there would be no expansion in Darlington.
The announcement was described as a huge blow by traders in the town, who said they were hoping it would not affect people's decisions to shop in the town.
The announcement follows less than a week after the directors of Dressers, one of the region's oldest businesses, announced it was selling its stores in Darlington and Northallerton to a property developer.
The Marks and Spencer spokeswoman said: "It's due to the business itself going through a whole re-strategy, looking at every aspect of the business, and the expansion plans were something due to take a cut."
The shop might become one of many across the country to be given a facelift to tailor them to customers' needs, after the conversion of 25 outlets last year into concept stores.
Plans included an extra sales floor, the transformation of the empty Burton's building at the rear of the shop, a three-fold expansion of the clothing department and the reopening of the children's section.
A 50 per cent expansion of the food hall, installation of customer lavatories, and a bigger lingerie section were also planned.
Susan Young, secretary of Darlington Chamber of Trade, said: "The chamber of trade hoped the expansion would offer a better choice for the people of Darlington.
"Any expansion by a major retailer such as that would be a boost to the town, especially in light of the news that Dressers is going to be sold," she said.
Richard Alty, Darlington Borough Council's head of regeneration, planning, transport and tourism, described the news as regrettable, but said it did not reflect the economic state of the town centre.
He said retail was buoyant and many stores had recorded their best Christmas trade ever, with numbers of shoppers and trade both "substantially increased".
Mr Alty said the recent announcement of a town centre strategy would mean a substantial expansion of what Darlington town centre offered
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