RETAIL giant H&M is set to move into the former home of Woolworths in Colchester.

The Swedish clothing company has applied to Colchester Council to build a new shopfront and put up signs at the two entrances to the store, in Culver Square and Head Street.

Spokesman Laura Maggs said she was “delighted” to confirm a new store would open next spring as part of the company’s expansion plans.

Business leaders hope it will attract more shoppers into the town and help struggling retailers during the recession.

Michelle Reynolds, chairman of Colchester Retail Business Association, said: “If you speak to quite a lot of shops, the picture is still not rosy, although Colchester is performing well compared to other towns.

“There are still some traders very close to desperation.

“Hopefully, this will generate some stimulus for people to come back into town.

“A lot of people who live in the outlying areas might come into the town centre now.”

Shoppers have been calling for an H&M in Colchester for years, with one supportive group on Facebook attracting 269 members.

Woolworths shut the doors to its 30,000 sq ft store for the last time in January, a few weeks after the iconic firm went into administration.

Robert Leng, president of the Essex Chambers of Commerce, said the H&M announcement was “fabulous news”.

He said: “It fits in very well with Colchester having a very young population.

“The key is it is in the town centre, where we really want to see this sort of business.”

Nigel Offen, Colchester councillor responsible for business, said he hoped it would encourage other firms to fill the town centre’s other empty stores, including the former Zavvi, also in Culver Square.

He said: “It will make a huge difference, not only to Culver Square, but to Colchester’s shopping area as a whole.

“The news big companies are looking to open new stores on prime sites must be a sign something is happening.”

Culver Square manager Derek Ashbee said he could not confirm whether H&M would move into the former Woolworths site, but added an announcement was expected soon.

In August, the Gazette revealed discount store QD had started negotiations to move from its current home in St John’s Street to the former Woolworths store.

No one from QD could be contacted for comment on Tuesday.