THE multi-million pound redevelopment of a Hampshire shopping centre is set to be completed by Christmas 2012.

Plans to redevelop the Whiteley Village retail centre were approved by Winchester City Council yesterday.

The current site will be demolished and then replaced with at least 40 new "community focused" shops, which will cost around £100m.

The retail outlet has been struggling financially over the past few years due to competition from the Gunwharf Quays shopping centre in Portsmouth and Fareham town centre.

City council planning officer James Jenkinson said the scheme should be approved because it would specifically meet local needs.

He said: “The reason for these development proposals is to generate a town centre which will be much more local. It will be better for local residents and have better local facilities.”

In addition to the new shops, a community centre, library and parish council offices will be added to the existing on-site Meadowside Leisure Centre to create a "community hub".

British Land and USS, the developers who own the outlet, have been consulting with the Whiteley Parish Council and Whiteley residents for more than a year in order to establish what the local community wanted.

Mike Evans, chairman of Whiteley Parish Council said the community welcomed the development which would benefit the community for the foreseeable future.

He said: “We believe the redevelopment is essential to the sustainability and growth of Whitely and we are satisfied that the scheme will provide us with a vibrant and diverse town centre that better meets the needs of the existing and future population of Whiteley.”

The developers had already obtained planning permission to redevelop the area in August 2010.

Their original plans included a hotel and residential housing, but they were scrapped due to a lack of demand.

Cllr Therese Evans, a former city councillor for Whiteley, praised British Land and USS for continuing to support the area despite the recession.

She said: “I would like to say how pleased I am that in the current economic climate the developer has come back because it would be a pity if Whitely was allowed to stagnate.

“I think it will be very well used and it will meet the demands of a local shopping centre for local people.”

Work is set to begin in the area in late spring 2011.