STORE wars are coming to York. The Evening Press can reveal today that Sainsbury's is set to carry out its long-awaited expansion at Foss Bank, creating a massive rival to the planned Morrison's supermarket at the nearby Foss Islands retail park.

The extension now looks likely because Homebase is to relocate from its present site next to Sainbury's - to a new home at Foss Islands.

The news comes as work began today on the new James Street road link, which is vital to the £40 million Foss Islands retail development.

City planners have been asked to iron-out technical details so Homebase can occupy nearly half of a 75,000 sq ft area at the retail park, which is being developed on the 14.48-acre Foss Islands site.

A Homebase spokeswoman said: "Contracts have been exchanged. The new store will be much bigger and better. It's great news for staff and for customers who will be offered a much better shopping experience." The store is due to start trading in early 2008.

The move will leave the way open for Sainsbury's to knock down its Homebase neighbour to create a huge, extended two-storey supermarket, to rival the new 82,000 sq ft Morrison's superstore, only a few hundred yards away.

Sainsbury's won planning consent in April 2004 to demolish and rebuild, but its Homebase neighbour insisted at the time that it would continue trading at Foss Bank.

A Sainsbury's spokeswoman said: "We are committed to improving our store at York Foss Bank for customers and are keen to progress with our extension plans."

The new Homebase will be immediately opposite the Morrison's store, which developer Keyland Gregory said should be completed and ready for trading by Christmas 2007. The Foss Islands regeneration scheme will create one of the biggest new retail parks in the North and generate about 200 jobs.

The road scheme, a joint project between City of York Council and retail park developers Keyland Gregory, will cost £2.5 million and is due to be completed in November. The link will begin at a new traffic signal junction in Layerthorpe, and then follow the line of Hallfield Road before running alongside the James Street travellers' site, over the former Foss Islands tip and meeting the existing section of James Street, near Hazel Court.

The council said the road would be a high-quality improvement to the city's transport network, relieving congestion in Foss Islands Road. The old Hallfield Road bridge will be demolished and replaced with a gentle embankment, down which the existing cycle track will be diverted.

Peter Wilkinson, project director for Keyland Gregory, said: "This is an important and necessary provision that will not only complement the retail park, but also contribute greatly to improving traffic circulation in and around York city centre."

Meanwhile, the Homebase announcement will trigger the serious marketing of 40,000 sq ft of space left on the retail terrace in the Foss Islands development.

Updated: 09:29 Monday, February 20, 2006