Builders are to start work on a giant new Tesco on stilts in Hednesford in the next few days after a contract with developers was signed.

Cannock Chase Council has signed the contract with developers St Modwen meaning work on the 80,000 sq ft store can now start. It is due to bring hundreds of jobs and will form the centre of the town’s £50 million transformation.

The council says it remains on track to deliver the Hednesford town centre regeneration programme by the end of 2012.

Councillor Diane Todd, town centre regeneration portfolio leader, said: “This latest news takes us a step closer to achieving our vision.

“Now that a formal agreement is in place, developers St. Modwen will be able to have serious discussions with other major retailers about opportunities in Hednesford.”

The site will also house up to seven retail units on a terrace, with community facilities relocated from the old Aquarius club and 640 parking spaces.

The 85,000 sq ft store would be built on stilts, with car parking spaces provided below, similar to the Tesco Extra store in Lichfield.

At Chase Gateway, the other regeneration project in the town, there are further retail spaces available alongside the new Hednesford Bingo and a 170-space shoppers’ car park.

Victoria Street will close on February 6 as part of the Tesco work.

Mark Watkins, development surveyor for St. Modwen, said: “It’s fantastic news that Tesco has committed to opening.”

By Harry Gottschalk