A SEX shop in York has unveiled plans to find "supermarket" sized premises in the city.

The Adult Shop, in Gillygate, which has courted controversy in the past, is embarking on an expansion drive.

One of the options being considered includes providing a new outlet exclusively for the gay market.

Managing director Nick Griffin claims the company is being forced to look elsewhere because sex is such big business in the city.

Today he said he was considering either a new shop four times as large as his current outlet, or the smaller shop catering for "an expanding gay market".

Mr Griffin also talked of his plans to open a "gay sauna" in the city, giving the gay community a place to meet.

"We are actively looking for premises at the moment. We can't expand our present shop because there is nowhere to expand to," said Mr Griffin.

"We are very busy and need a property four times as big. There's a lot of stuff we can't stock at the moment.

"I am looking either for that or another small shop for the gay market. The demand is there.

"Our gay sauna would be a meeting place for gay people, it would not be a disguise for a brothel.

"We have got a bit of an empire going and are at the cutting edge of sex in York."

At the Salvation Army, also in Gillygate, commanding officer Paul Westlake said: "This is the first we have heard about this.

"We are concerned about it but, at the same time, feel we can make no impact in stopping it.

"All we can say is that the Salvation Army, by its biblical principles, feels that homosexuality is against God's will."

A City of York Council spokesman said: "No licence is needed to operate a sauna, either straight or gay. Any alterations to the existing licensed sex shop would need our approval."

Updated: 10:42 Wednesday, January 23, 2002