Traders in a Shropshire market town today claimed the opening of a supermarket nearby has sounded a death knell for independent shops.

Bosses at some town centre shops in Ellesmere say they are losing customers or even closing down in the wake of Tesco opening a store at the canal wharf in July.

But Tesco has distanced itself from the claims, saying it has given the town an economic shot in the arm and helped create about 140 jobs.

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A Tesco spokesman said: “Independent retailers can offer something very different from Tesco and there is no reason why they cannot prosper side by side.”

Today it emerged the last independent greengrocer in the town – Eden Fruit & Veg – is facing the axe.

Lee McArthur, owner of the Cross Street shop, today revealed his business may not survive into October, adding that four part-time jobs are under threat.

He said the business, which opened three years ago, has suffered after being deserted by shoppers who have taken their custom to the supermarket.

Mr McArthur, 35, said: “We may very well have to close and I’m trying to hold on as long as I can but with the overheads I’m giving it to the end of this month before I decide.

“The fact that Tesco has moved into town has made a noticeable difference to us and I’ve just lost faith in shoppers. Trade is going down on a daily basis – the town’s a shadow of its former self.”

Drew Taylor, owner of B Hawkins & Son butchers in Cross Street, said parts of his business had struggled, while others were thriving after Tesco arrived.

He said: “The shop takings are down and town is definitely quieter now Tesco is here.

“Some shops will start disappearing but we just have to knuckle down and try to diversify the business to stay alive like we have with going for extra catering contracts.”

Closing-down signs filled the window at Mere Mobiles in Market Street, where boss Joe Graham is plotting to move his business online. He said: “Tesco has affected us and footfall has dropped away.

“They are stocking some of the same computer games and mobile phones as us so we are closing the shop but not the business.”

Isabel Scott, owner of Fancy That in Scotland Street, said her shop was to close next month because of ill health.

Lincoln McMullan, chairman of Ellesmere Chamber of Commerce, said: “I’m sorry to hear some businesses are closing, but hopefully the shops won’t be empty for long. It’s hard for food shops to compete, but if it’s a bit quieter in town just now it’s because of the economic climate.

“I don’t think it’s just down to Tesco.”

Mr McMullan said he knew of four independent shops which had gone to the wall since Tesco arrived.

So what did Ellesmere shoppers make of it all?

One, who did not wish to be named, said: “I spend about the same in Tesco as I did in the town shops, but I’ve been coming to Tesco since it opened.”

Another shopper laden with Tesco bags said: “I still sometimes use the small shops but it’s handier to get everything under one roof.”

The Tesco spokesman added: “What local traders often find is that when Tesco opens nearby it increases footfall to their stores.

“We are part of the community and the Ellesmere site has created lots of jobs for the local economy — and supermarkets have a very different offering from independent local shops.”

By Tom Johannsen