Empty shops are being reoccupied in a north Shropshire market town despite the recession and a fresh wave of competition from a supermarket giant.

The green shoots of economic recovery are springing up in Ellesmere just months after Tesco opened its new store in the town, business leaders said today.

Lincoln McMullan, chairman of Ellesmere Chamber of Commerce, said at least five new businesses had opened or expanded in the town in recent weeks.

He said: “Empty shops in Ellesmere don’t stay empty for long.”

He said the new shops proved the town was doing better than most other market towns in the recession.

Mr McMullan said he sympathised with the owners of three shops that had closed in recent months, including Eden Veg, in Cross Street, whose owners said they were unable to carry on in the face of competition from Tesco.

But he said: “It is important to look at the positive as three shops have closed but at least five have opened.

“The chap who used to run the Newdell Computers cybercafe in Scotland Street has now taken over the former Eden Veg premises and expanded his business.

“His former premises in Scotland Street is to become a florist.

“The former Fancy That shop premises in Scotland Street has a new business called Tallulah Hats moving in.”

He added: “There is an empty shop in Market Street which will become premises for Ellesmere Miniatures, who will be selling dolls houses.”

Tesco has said its arrival had not sounded a death knell for independent traders, adding that the store, opened in July, created 140 jobs for the local economy.