A leading supermarket chain is planning to extend and modernise one of its large stores and potentially close one of its smaller outlets in Bicester.

Tesco began a three-day public consultation on plans for the superstore in Pingle Drive, and the future of the Tesco Metro store in Sheep Street yesterday, but has given assurances that no jobs will be lost.

Tesco has an additional four Express-branded stores in the town, bringing its total number of outlets to six, leading some to dub Bicester 'Tesco Town'.

Tesco's corporate affairs manager Felix Gummer said: "One of the proposals is for the Metro store in Sheep Street to close and the square footage will be transferred over to the Pingle Drive store.

"No jobs would be lost. Everyone from the town centre store would be given first refusal of the jobs available at the new store."

Shoppers and businesses gave a mixed reaction.

Nancy Lacey, of York Place, Bicester, said: "I welcome the extension and modernisation - as long as we get some proper services.

"I want to see more products in store and better road services in and out of the area, as well as making sure that Bicester keeps the other shops and compet- itors."

Bicester Chamber of Commerce spokesman Ben Jackson said: "The existing large Tesco is undersized for Bicester. It cannot carry the range of products a town this size needs.

"However, further development should bring with it ways to further improve traffic flow in and around the entrance off the main road.

"I don't think that Tesco is over-running Bicester - there is competition in the town centre from Somerfield and Marks & Spencer and other stores around the area."

But butcher Brad Kershaw, who works at Clays in Sheep Street, said: "This will make it even worse for us - and we're struggling enough as it is. Everyone in the town will struggle.

"These back-street shops are deteriorating enough already."

Julie Daniels, spokesman for Somerfield, in Market Square, said: "Competition inevitably brings positive benefits to local customers."

The public consultation is taking place in the Pingle Drive store car park from 10am to 6pm today and 10am to 2pm tomorrow.

It is not yet known whether the Sheep Street store will become part of Bicester's £70m town centre redevelopment scheme, or if the store will be closed - a possibility that Tesco is not ruling out.

Mr Gummer added: "Bicester faces an exciting future."