MORE than 100 shopworkers are facing redundancy after supermarket chain Waitrose announced it is to close its loss-making store in Durham City later this year.

The company has operated the former Safeway store in The Gates Shopping Centre for just over two years, but has been unable to return it to profit.

The branch is now scheduled to close in the summer as the company relocates to a new 10,000sq ft supermarket on Tyneside.

Waitrose, part of the John Lewis Partnership, is moving its operations to Eldon Square as part of a £170m redevelopment of the Newcastle shopping centre, where it will be located next to the parent company's department store.

When Waitrose opened its doors in Durham City in November 2005, the branch was the most northerly outpost of the upmarket grocery chain. The 18,000sq ft store was one of five bought from rival group Morrisons, after its acquisition of Safeway.

A spokesman for Waitrose said: "Where possible, suitable employment will be found for its 103 Durham partners - either at the new branch in Newcastle or elsewhere in the John Lewis Partnership.

"If this cannot be achieved, partners will receive a redundancy package and be given support to find alternative positions elsewhere."

Mark Price, managing director of Waitrose, said: "Eldon Square offers us another exciting opportunity to grow our business and underlines our desire to bring the Waitrose offer to more people in the North-East.

"The decision to close our Durham branch was not a decision we took lightly, and was made after long and careful consideration.

"We made a major investment in the Durham branch with every expectation that the shop would be successful.

"We understand the disappointment this decision will cause, however, the store has traded at a loss since we opened two years ago.

"Unfortunately, despite the best endeavours of our partners and investment in branch marketing, we have not been able to return it to profit."