Property developers are planning a £5m expansion at an Oxfordshire shopping centre which could create more than130 jobs.

Stockdale CALA, owners of the Cherwell Centre in Banbury, said fashions and homewares retailer Matalan and fitness club operator Cannons would move in if its planning application was successful.

Stockdale plans to build a 70,000 sq ft two-storey development on open ground at the corner of Cherwell Street and George Street, next to the Cherwell Centre car park.

The car park will be retained to provide parking for 175 cars.

If Cherwell District Council approves the application, construction work could begin in summer 2002.

Tenders for the construction work will be sought from local building contractors.

John Liggins, a director of Stockdale CALA, said: "We are delighted to be able to bring two quality names such as Cannons and Matalan to extend the range of choice of recreation, shopping and leisure available in Banbury."

The health club, with a swimming pool, would be located on the first floor of the new building, and would employ about 55 people.

The Matalan store would be on the ground floor. It would be one of the first of its 130 shops to be located in a town centre.

Developers estimate increased visitor numbers would benefit the local economy by about £2m a year.