Oxford's big Debenhams store will reopen next week after a 35m revamp, bringing traders a new wave of optimism.

Workmen are now racing to complete much-delayed street improvements outside the store, ready for the re-opening at 10am on Thursday.

The city council says that the closure of Debenhams had far greater impact on the number of shoppers visiting Oxford than anyone had feared.

Now it is hoping the return of the big store will provide a major boost to businesses around Broad Street and George Street, which have been continually hit by roadworks, closed pavements and the impact of the Oxford Transport Strategy. The old Debenhams building was effectively demolished, with only the facade kept. The new shopping complex is expected to create 250 new jobs.

City centre manager Marcus Lapthorn said: "The number of people using that end of the city centre dropped when the store shut.

"I think we underestimated the negative effect that the demise of Debenhams directly had. With Borders now underneath, this is going to transform this corner of the city."

The director of Oxfordshire Chamber of Commerce, Bill McCardle, said: "We are delighted that Debenhams is back. It has been badly missed. There can be no doubt it will become a focal point, bringing in people from all over the Thames Valley area." *For the inside story on Debenhams in Oxford see next week's Oxford Mail