Regeneration firm St Modwen has agreed a deal with a major supermarket retailer to bring an 80,000 sq ft foodstore to its proposed £50 million Hednesford Gateway scheme in Cannock Chase.

The Birmingham firm has been selected to build the supermarket in a move that plays a major part in bringing forward the wider regeneration of the town centre area in Hednesford.

Construction work on the foodstore is expected to start on site in 2010, subject to planning permission being secured by the end of the year.

John Dodds, regional director of St Modwen, said: “This landmark foodstore deal is a milestone for the Hednesford Gateway scheme, and to secure this level of commitment in the current climate from a major UK retailer reinforces the appeal that Hednesford has as a retail destination.

“With the transaction agreed, St Modwen and Cannock Chase Council are now in a position to realise the vision for the regeneration of the town centre, bringing a renewed sense of prosperity and vitality to Hednesford and the wider Cannock area.”

Cannock Chase District Council leader Coun Neil Stanley said: “The proposed £50 million Gateway scheme is set to put Hednesford on the map, vastly improve the retail offering and shopping experience in the town, and crucially it will create a host of employment opportunities for local people.”

To be built in phases and anchored by the 80,000 sq ft foodstore, the Hednesford Gateway scheme includes 48,000 sq ft of non-food retail space, a 17,500 sq ft discount foodstore, new community facilities and a new 648-space car park.