OPEN “store wars” have broken out in a North-East city - with three major retailers going head-to-head in the battle for the shoppers’ pound.

Tesco has long been retail king on the east side of Durham City – its sprawling Extra store on the former Mackay’s carpet factory site in Dragonville employing hundreds of local people.

But in January Asda unveiled plans to open a new supermarket employing 400 people just yards away on the other side of Dragon Lane, on the former Mono Containers factory site.

Now Morrisons is getting in on the act, today (Monday, September 8) announcing proposals to open a new store less than half a mile away on Durham City Retail Park.

The foodstore would open in the existing B&Q, creating 250 jobs, while the DIY retailer would shrink to what bosses are calling a “smaller new format”.

What that means for jobs at B&Q, the firm has not disclosed.

Morrisons development executive Richard Haynes said the firm had a “longstanding requirement” for a store in Durham and was thrilled to be involved in the project.

Scott Sharp, B&Q’s divisional director north, said the deal was great news for customers and the local community as the new-look store would “revitalise our format, making it easier for them to shop”.

Local county councillor Bill Moir said the announcement was great news for shoppers and workers.

“These stores do their market research and really understand if there’s a market available for them.

“I’m absolutely certain Asda wouldn’t have invested in the engagement it has if they didn’t think it would work for them, or Morrisons,” he added.

However, Cllr Moir the traffic impact of the new stores would be a “hot potato”.

Both Asda’s planning application for their new store and Morrisons’ for minor alterations to the B&Q building and extra car parking are currently with Durham County Council awaiting a decision.

Back in 2011, Tesco and Sainsbury’s opened new stores next to each other – and within a mile of existing Asda and Morrisons branches – in Bishop Auckland and all have survived.