FIVE new shops could be built in Witney on the site of discount store Merlins.

Realis Estates Ltd has applied to demolish the current building in Welch Way and replace it with a two-storey one.

A spokesman said there had already been “significant interest” from fashion and lifestyle retailers and caterers. to move into a new building.

If planning permission is granted by West Oxfordshire District Council, work would begin almost immediately, with the new retailers announced later this year.

The plan has been backed by council and business leaders, who said it will improve the look of Welch Way.

The road has benefited from large investment in recent years, with the £50m Marriotts Walk Shopping Centre opening in 2009 and Windrush Health Centre and Abingdon and Witney College expanding.

Realis Estates Ltd managing director Duncan Mathieson said: “We intend to demolish the existing structure, which is not in keeping with the surrounding architecture and does not reflect the character of the market town, and replace it with a more picturesque building that blends with its environment.

“We have had significant interest from a wide range of good quality, fashion and lifestyle retailers as well as catering operators.

“At this stage it is too early for us to confirm any specific names.”

He said the development would create 8,175sq ft of retail space across five ground floor units, along with 3,440sq ft on the first floor.

The planning application cites the Next store in the Woolgate Shopping Centre as an example of what could be achieved at the site.

The Welch Way building was constructed in the 1960s for Southern Electricity Board, but the company vacated the premises in 1998 and Merlins moved in.

Realis Estates Ltd, based in Birmingham, recently bought the site from O&H Properties Ltd, which won permission in 2006 to demolish Merlins and construct a three-storey building of retail units and 14 flats.

Witney Chamber of Trade chairman Lesley Semaine said: “Any expansion that improves the look of the town is definitely exciting.”

She added: “I hope they chose carefully the tenants that go in there. I would like to see some of those little independent stores that draw people to the town.”

Witney Town Council member David Harvey said: “This is another tribute to the vibrant market town centre that we have and once again underlines the importance of the policies for free car parking throughout West Oxfordshire.

“Any upgrading of existing premises is always welcome, particularly if it brings exciting new shops into the town centre, which benefits all those already there.”

Merlins was not available for comment.