Shops in Ellesmere are battling to stay alive in the recession and competition from retail giant Tesco’s new store, it was claimed today.

It comes as the town’s last independent greengrocer announced it is facing closure because of a downturn in trade which the owner says has happened since Tesco opened.

But Tesco today denied its arrival had sounded a death knell for independent traders.

A spokesman said Tesco had benefited the town.

The spokesman added that the new site had generated 140 jobs, helping to reduce long-term unemployment in the area. Lee McArthur, owner of Eden Veg in Cross Street, said his business had been affected since the national firm opened its new store two months ago.

Mr McArthur, 35, said that he was facing a financial struggle to meet overheads in the business while his customers go elsewhere for their fruit and veg.

“We’ve been trading for three years and I bought a house just around the time Tesco got planning permission and now I can’t afford to carry on while trade is so slow,” he said.

He added that no firm decision has been taken on whether to close his shop down.

The downturn in the economy has also impacted on trade in the town. Lincoln McMullan, chairman of Ellesmere Chamber of Commerce, said he hoped a number of empty shop units in the town wouldn’t stay empty for long.

He said many had closed because of the economic climate such as Flower Corner in Cross Street, which has stood empty for more than a year.