Calne traders are hoping the new Woolworths will boost business in the town centre.

Last week the high street store announced it will be moving into Phelps Parade in early 2009.

The multi-million pound regeneration project, funded by Westlea Housing Association and North Wiltshire District Council, will see a complete refurbishment of Phelps Parade.

Two new retail outlets will be created where Kwik Save used to be with 16 one and two bedroom housing association flats above.

Owner of Popins on Phelps Parade, Norman Richardson, said: "I am quite happy with the regeneration of the town centre.

"We certainly hope the project goes ahead. The town centre needs something to draw the crowds in and create more business.

"We just hope parking won't be a problem and hope the council will look at the parking issue with more people coming into town."

Other traders have welcomed the confirmation of Woolworths moving into the town.

Owner of Tag and former councillor Peter Dolman said: "This is very welcome news for us.

"Woolworths coming to Calne is an excellent addition to the town centre. It will encourage more people to come to Calne and give traders more opportunities to do business."

But some councillors fear social housing in the town centre will lead to more trouble around Phelps Parade.

Calne town councillor John Ireland said: "Plans mean 100 per cent of housing in the town centre will be social housing.

"When the homes are built it will mean people from the local area, not just Calne, will be able to move into the town.

"These people have very different mindsets to those from Calne and I think it is a huge mistake.

"I have very grave concerns that the multi million pound development will turn into an inner city shopping arcade."

The council will begin public consultation in November by sending out leaflets explaining how the scheme will affect the community.