Tesco will replace Somerfield supermarket, in The Pavements, Chesterfield, which was destroyed by a blaze last June, as part of a refurbishment plan for the 27-year-old shopping centre which will see new lighting, decoration, refurbished public toilets and new lifts fitted.

Somerfield has been in negotiations with Tesco to sell the remainder of its lease to the supermarket giant and the agreement was finalised on Friday. Tesco's contractors began shop fitting works this week, ready for the new store to open on October 6.

George Cowcher, chief executive of Derbyshire and Nottinghamshire Chamber, said the presence of a supermarket would benefit Chester-field, 'creating jobs and drawing custom and potential business for other traders from further afield'.

Impact

"Footfall suffered dramatically since Somer-field closed," he said.

Andy Bond, market operations officer for Chesterfield, said retailers in that area of town were looking forward to getting a supermarket back.

Final proposals for The Pavements improvements are due to be considered before the end of the month, with refurbishment works taking place over the coming year.

The council has also announced new tenants for units on the perimeter of the precinct on Low Pavement.

A lease has been agreed with bookmakers William Hill for the former Connexions office, while 'a rapidly expanding regional butcher' will take over the old Farm Foods unit.

• Somerfield, which has supermarkets in Dronfield, Clay Cross and Bolsover has agreed to sell its stores to The Co-operative Group. The £1.57bn deal was announced yesterday.