BHS opened its major new department store in Oxford today - to a welcome from fellow businesses.

The opening, as the build-up to the Christmas rush gets under way, ends a ten-year quest by British Home Stores for a base in Oxford.

Free balloons and entertainment greeted shoppers who turned out for the opening of the new department store in Queen Street.

Business leaders hope the store will boost the city as a regional shopping centre, drawing people in from surrounding counties.

City centre manager Marcus Lapthorn said: "It will add greatly to the variety of shops in the centre and the timing is wonderful for the run-up to Christmas. We think it will draw people in to Oxford from other places, who might not have come in the past simply because there was not a Bhs store.

"I am delighted that this prestigious store is opening in the heart of the city." Bhs manager Anne Derlezka said she was delighted with the new store. She joined Bhs 20 years ago and has worked for the company throughout the UK, most recently as store manager of Bhs in Cheltenham. She said: "The response from the people of Oxford is very encouraging and we hope they enjoy our opening day celebrations."

Barry Tanswell, manager of Marks & Spencer, said he thought the arrival of Bhs would boost trade for everyone in the city by attracting more shoppers.

He said: "It is another main household name in Oxford city centre. I don't see it as a threat, but an opportunity."

Graham Cohen, of Allders in the Westgate, said: "I welcome their arrival. It will make an authoritative statement at this end of the city."

No-one was available for comment at either Littlewoods or Debenhams. The new 35,000sq ft Bhs store, which will employ 140 people, offers womenswear, menswear, childrenswear, lingerie and fashion accessories.

Its Homestore department also offers lighting, bedding and home accessories. The Oxford store will also house a 148-seater restaurant.

Other major shopping changes in the pipeline for the city include the impending redevelopment of the Debenhams store in Magdalen Street. It plans to close in February next year, with trading continue from sites in Templars Square, Cowley and St Ebbe's Street while the work, which could take 18 months, is carried out.

Also in the melting pot is the regeneration of the Oxford Prison site, which could bring a number of major new stores to the city.

Mr Lapthorn said the move of The Gap store from Queen Street to Cornmarket had opened up another site in Queen Street.

He said: "Retail space in the city is at a premium and as soon as a unit becomes empty there is huge demand for it. We know there are people queuing up for that unit."

New moves to improve pedestrianisation of the city and upgrade the city's closed circuit television network would, he said, also give a boost to shoppers.

He said: "All in all it will make Oxford a safer and nicer place."

The Bhs building has been completely rebuilt inside, but it still retains its early 20th century front.

It is built on the site of former Oxford City Council offices and a collection of shops that used to include a Bhs lighting store.

The store was being opened today by Storehouse non-executive director Brian Hardy with Bhs managing director Stephen Tague.

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