A big-name retailer could close its two Colchester branches and build a huge new superstore creating an extra 130 jobs.

Sainsbury's Homebase outlets in St Andrew's Avenue and Tollgate, Stanway, could be closed down.

And a big new DIY store and garden centre could be built on open land in London Road, Stanway, owned by Colchester businessman Danny Watts.

Developers would provide access to it by building part of the planned Stanway Bypass, from Essex Yeomanry Way to Tollgate West. The new store would employ 200 people, 130 of which would be extra jobs for Colchester.

Colchester Council has received an outline planning application from Corporate Investments for the scheme, earmarked for a field opposite Sainsbury's and next to the Harvester restaurant.

As well as the 120,000 square feet store - which is bigger than the existing Sainsbury's supermarket - it includes plans for an area to be used for the sale of cars, boats and caravans plus an office complex.

The proposals run alongside plans also from Corporate Investments, currently under consideration, for two new drive-through restaurants and one seated eaterie at Tollgate near Curry's.

According to a letter with the planning application, if the superstore is approved by councillors the St Andrew's Avenue Homebase would close down for possible redevelopment. The Tollgate East branch would be vacated.

Colchester Council said the areas concerned were designated for employment use but there was an issue about curbing out of town development.

Planning officers are anxious to find out what the two existing Homebases would be used for as it could mean a net increase in out of town retailing in Colchester.

A spokeswoman for Homebase declined to comment.

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