Waitrose has signed up to be the anchor store at the new Charles Street development in Dorch-ester.

The supermarket giant has moved a step closer to opening its new store by agreeing terms on their lease with developers Simons.

Waitrose, the first retailer to sign up to the project, will relocate from its store on Tudor Arcade just a short walk away into a new, 30,000sq ft store as the controversial project’s anchor tenant.

The new store’s sales area would be 25 per cent larger than the current shop and importantly provide an improved customer shopping experience and easier car park access for shoppers.

Chris Parry, branch manager at Waitrose Dorchester, said: “Tudor Arcade has been our home in Dorchester for more than 25 years.

“However, as shopping habits have changed over the years the premises has constrained what we are able to offer and our parking arrangement is not convenient.”

He said the existing store would be either be re-let as a whole or alternatively altered to smaller units and let to other retailers.

The announcement comes amid concerns over the impact of the scheme on the county town As the full scale of the first phase of the development becomes apparent, questions have been raised over the impact of the second phase on the local economy.

Work on phase one of the scheme involving West Dorset District Council’s new offices and the new Dorchester Library is well under way, with the size of the building drawing widespread criticism.

Businesses in the county town have already spoken out about the loss of 226 car parking spaces at the old Charles StreetSouth car park following the start of construction in June.

And Dorset County Council has come under fire after an investigation into the decision to relocate the library.

Auditors KPMG launched an investigation earlier in the year after receiving formal complaints over West Dorset District Council’s decision to relocate its offices to the Charles Streetdevelopment, as well as Dorset County Council’s decision to move the library to the same block.

The auditors said the authority failed to examine alternative sites that could offer better value.

Customers using the new store will be able to park in the Charles Street car park, with the existing Waitrose car park also remaining open to the public.

Andrew Pollett, project director for Simons, said: “The agreement for lease has now been exchanged and Waitrose can begin finalising plans for the new store.

“We are in detailed discussions with other retailers interested in being part of the scheme, and also an operator for the hotel.”

West Dorste District Council leader Robert Gould said: “It’s excellent news that a quality High Street name like Waitrose will anchor the second phase of the Charles Street development.

“It’s also good to hear that interest from other retailers is strong. This demonstrates how the council’s commitment to the Charles Street project is attracting private investment to create new jobs and prosperity.”