WORCESTER shopping is to undergo a multi-million pound development, but it will mean the end of one of the city's most famous stores.

The owners of the Lychgate Shopping Centre this morning announced plans for a major redevelopment which will create six new fashion stores.

Russell & Dorrell, a bedrock of Worcester shopping, will close for good, with only its furniture business surviving the revamp.

The centre owner, Tops Estates plc, is to start work on the 1960s development next January, creating the new shops, which will each be between 5,000 and 25,000 sq ft.

Plans include a 356-space car park. Existing retailers, including Sainsbury's, Monsoon, Jaeger and Top Shop, will all survive.

Adam Cohen, managing director of Tops Estates, said the development would be "to satisfy the considerable demand from multiple retailers seeking representation".

He added that the redevelopment would also provide considerable employment opportunities for the city.

In a statement to the Evening News, Mr Cohen said that the new shopping centre was good news for the people of the city.

"Worcester has been crying out for such a development as the lack of large stores has held back the growth of shopping in the city," he said.

"This situation will now be reversed and the people of Worcester will have the opportunity to shop in large fashion stores offering their full product range."

He added that the work on Lychgate would see it as the dominant fashion location within Worcester.

The new stores should be ready for trading by Christmas 2003 and Mr Cohen added that there would be further phases of development offering existing retailers an opportunity of upgrading their units to complement the centre's new image.

Russell & Dorrell is to close in mid-January 2003.

"The proposal for the development, which will certainly enhance the shopping assortment in Worcester, came at a time when it was difficult to be entirely confident of the future of an independent department store," said Howard Dorrell, director of Russell & Dorrell.

"It was a decision that was not taken lightly.

"We now need to commence discussions with all members of staff so they can start making plans for their future. It will be a time of change for many so we will be working to ensure it goes as smoothly as possible."

He added that it would be "business as usual" for the store for the remainder of the year.