BUSINESS chiefs hope moves to close one of the town centre’s biggest shops won’t be too devastating for the town’s economy.

House of Fraser announced yesterday it would close its Swindon outlet store as part of restructuring plans.

The branch, which stretches across three floors, is expected to shut in early 2019 and is one of 31 stores nationwide earmarked for closure.

Others include the flagship Oxford Street store in London.

Chairman Frank Slevin said the decision to close was a difficult one, but added: “There should be no doubt that it is absolutely necessary if we are to continue to trade and be competitive.”

Councillors and Swindon business chiefs hope the decision won’t cause too much harm to the town.

Ian Larrard, a director at Business West and chairman of Old Town Rotary Club, said: “I am devastated for House of Fraser employees and their families who are affected by the store closure.

“However, the retail environment has changed drastically in recent years, meaning that House of Fraser is no longer just competing with Debenhams, John Lewis Home or Marks & Spencer locally, but with Amazon, eBay and other online retailers, meaning that ultimately tough decisions have to be made.

“My hope is that the store closure won’t hurt Swindon too much. With consumer and spending habits changing, the decline in the number of retail businesses in the town centre can be offset by growth in leisure and hospitality sector.”

Garry Perkins, Swindon Borough Council’s cabinet member for the town centre, said: “Our ambitions for the town centre remain as strong as ever and millions of pounds will be spent on transforming the heart of Swindon over the coming years, making Swindon an even more attractive place for businesses.”

The council would work closely with the Brunel’s owners, FI Real Estate Management, to ensure more shops would move in, Coun Perkins said.

FI Real Estate Management, which owns the Brunel, said it was too early to say what might happen to the shopping space when it became vacant.

A spokeswoman for the management company said: “We are very sad to hear the news that next year House of Fraser will be closing more than half of its stores, including the flagship store in Oxford Street as well as local stores here in The Brunel and in Cirencester.

“It’s far too early at this stage to say what will happen to the space that House of Fraser currently occupies within The Brunel Arcade. However, as the owners of the centre, we are already underway with an investment programme, which looks to the long term vision of the centre and adapting it to reflect changing trends in retail and consumer demand. The Crossing, the newly-opened food hub, is a great example of that recent investment.

“Our team works closely with our tenants to help them navigate challenging trading conditions, unfortunately some things are beyond our control. Across the UK the retail picture, both in the high street and in out of town shopping, is continuing to go through a period of substantial change and evolution and many well-known brands that have been around for a long time are finding their businesses struggling as a result.”