Top people's supermarket chain Waitrose is to open its first store in Warwickshire - as part of a £20 million redevelopment of Kenilworth town centre.

The food arm of retail giant John Lewis will build a 25,000 sq ft outlet in a refurbished and expanded Talisman Square shopping centre.

An agreement between Warwick District Council, Discovery Properties and Warwickshire County Council will also deliver a new Kenilworth youth centre and road improvements.

Hugo Hawkings, of Discovery Properties, said: "We are thrilled to have secured Waitrose who we believe will give a huge boost to the town in general and to our existing tenants in Talisman Square.

"Following our recent planning application we agreed to work with the council to address some of the issues. Whilst it has taken longer than all parties would have liked to get to this stage we believe this proposal will provide Kenilworth with what it needs to put a heart back into the town centre - a quality foodstore and refurbished Talisman Square."

Nigel Keen, development director for Waitrose, said: "We are delighted to be bringing more quality and choice in shopping to the people of Kenilworth.

"Most of our shops are in town centres and we have a proven track record in enhancing the economic vitality of established shopping centres. The new supermarket will keep trade within the centre of Kenilworth, allowing other smaller shops and businesses to benefit."

Research by Warwick Civic Trust underlined the potential of supermarkets to generate new business in town centres.

A new Waitrose scheme in Malvern, Worcestershire, increased by two-thirds the number of people coming into the town to shop.