TESCO is under starter's orders to expand the size of its store in Chepstow - three years after opening.

The store, at Station Road on the former lorry parkon the edge of the border town, could hear next week whether it will be allowed to expand its 34,000sq ft store by 9,0000sq ft to 43,000sq ft.

Fears are that the expansion of the hugely successful store could mean problems for ten smaller, privately-owned shops in Chepstow.

Tesco, which has set up a display inside the existing store of how the enlarged development could look, aims to buy the site currently owned by Coltharts of Chepstow if it gets planning permission.

A Tesco spokesman said: "The expansion of the store in Chepstow will extend the range of food and also add more clothes as well as CDs, books and homeware items and other non food items."

He said a bigger warehouse will be constructed at the back and car parking spaces reduced by five from 295 to 290.

The store, which employs about 200 people would see around two dozen jobs created by the expansion.

Permission from Monmouthshire county council planners was deferred last time when questions were raised over a retail assessment study for the proposed development. It is understood the retail assessment suggests that the Tesco expansion could directly threaten the viability of five larger shops in Chepstow, with turnovers in excess of £100,000, or ten smaller shops.

Monmouthshire planners will meet either on Tuesday, May 22, if the report is finished or Tuesday, June 5 when a final decision is expected to be made.

Coltharts, a long-established firm, moved to its current site eight years ago when the town's library was built before Tesco showed an interest in the Station Road site.

Managing director Robert Colthart said the business on the site will close down at the end of this month.

Mr Colthart said: "We have agreed to sell the site to Tesco subject to planning permission being obtained - but whatever happens the shareholders of the existing company have decided to close down this business at the end of the month."

Mr Colthart would not say how much Tesco would pay for the site. He said the firm's garage at St Arvans, between Chepstow and Tintern, was closing for the sale of fuel but would re-open as a Unipart sales and service centre.

He said his own plans were well advanced to open a new garage business in the Chepstow area.