BOASTING designer names such as Jasper Conran, Hugo Boss and Pringle Scotland, it was billed as the south coast's shopping paradise when it opened in late 1999. Hundreds of thousands of bargain-hunters a month were expected to flock to the tiny Hampshire town of Whiteley to pick up famous fashion labels at knockdown prices.

Less than ten years on and developers this week announced the £60m retail flop is to be bulldozed and rebuilt from scratch.

The reason for Whiteley Village shopping centre's dramatic failure has been squarely pointed at Gunwharf Quays, in nearby Portsmouth Harbour.

Both shopping outlets opened within two years of each other and Whiteley simply could not compete with its bigger neighbour, which had almost twice as many stores.

Whiteley residents and councillors have long called for the factory outlet to be scrapped and replaced with new shops and facilities that meet the needs of the local people.

In a complete overhaul of the site, the centre's owners, the Whiteley Co-Ownership, now hope to create a new heart for a community that is set to double in size to 6,000 residents.

Central to the £100m vision is an improved and enlarged Tesco store that will be repositioned to the end of the main street and flanked by a number of smaller shops.

Above the supermarket will be 36 one and two-bedroom apartments. A total of 250 homes will be built in the centre over the next five years, plus an 80-bed business hotel.

As a sweetener for residents the scheme includes a new "community hub" featuring a library, parish office, public meeting rooms and police facilities.

Whiteley East Residents' Association vicechairman Steve Peters said the village had needed a bona fide local centre for some time, but added that investment in infrastructure was needed for it to succeed.

"We would like to see some real commitment to community involvement from those involved - developers and councils alike - to avoid the mistakes of the past," he said.

Sean Woodward, Whiteley ward councillor and leader of Fareham Borough Council, has always argued the factory outlet centre was wrong for Whiteley. This week he told developers he wanted the number of new homes reduced and a churchaided primary school included in the plans.

However, Whiteley Parish Council leader Mike Evans said a busy central location was not suitable for a new school.

Mr Evans said a major consultation with local residents had been launched to find out what types of shops and facilities they wanted in their new village centre.

The findings will be published next month to ensure the developers have learned from the mistakes of the past and this time listen to the people.