More than 100 jobs could be created in a Mid Wales town, after retail giant Tesco formally announced plans to create a store.

The supermarket chain has been working on coming to Machynlleth for months and today it announced it wants to build a 20,000 square foot store.

Tesco bosses said the move would allow food expenditure to be retained in the town rather than in rival towns and create a total of 140 jobs.

The location of the new store has not been formally revealed but in December, Tesco confirmed it had bought the former Travis Perkins site in Doll Street, Machynlleth. The firm moved to the Treowain industrial estate last year.

Tesco bosses said the new supermarket would be an energy efficient “environmental store” and announced it will soon be inviting members of the public to a public exhibition to see the plans and explain the reasons for the location.

Felix Gummer, of Tesco, confirmed the plans and said: “Our independent household survey shows that only 16.9 per cent of main food shopping is undertaken in the town. 

“We therefore now know the extent to which people shop outside Machynlleth. This is the expenditure we wish to retain in the town.

“I will soon be holding a full public consultation with the local community so that all community issues can be addressed.” 

Mr Gummer said that at present, people travel 18 miles to shop in a supermarket in Aberystwyth. Some people shop as far as Newtown and Shrewsbury, he said. 

He said the location of the new store will be in easy walking distance of the rest of the town centre and will give traders and shoppers the benefit of free car parking for the town.

The carbon footprint of the new store is 70 per cent less than that of market leading stores built in 2006, he claimed.  

Mr Gummer added: “The new Tesco environmental stores are an exciting development in Tesco’s long term plans to reduce significantly the carbon footprint of its stores by 2020”. 

And he said the new store will play a significant role in the local economy employing 140 staff. 

These jobs will be prioritised for local people through the local Job Centre Plus.

He said the new store will have environmental features including a lighting system that automatically dims when natural light increases and a natural refrigeration system using carbon dioxide.