A NEW concept in motorway shopping is to be pioneered at an Oxfordshire service area.

Granada plans to spend £10m extending 20 of its motorway service stations with plans to bring in high street retailers for the first time.

The Cherwell Valley services, on the M40 at Ardley, is due to be included in the extension plans.

Retailers signed up so far include Superdrug, Clinton Cards, Thorntons, Sock Shop and Tandy.

The new shops are designed to complement existing outlets rather than compete with them.

The television-to-hotels group has also announced plans to create 2,500 new jobs in its roadside catering and Travelodge chains.

The company, which produces Coronation Street, Emmerdale and Heartbeat, said it had seen a 13 per cent growth in earnings in its last financial year.

Travelodge sales were up 17 per cent over the year and Granada was continuing to push its expansion programme, especially in urban lodges.

Hotel division sales were up in the UK and internationally by more than £8m on a comparable basis.

Food services were also given a boost in December when it was announced Granada had won the contract to supply food for the Millennium dome.

Chairman Gerry Robinson said: "Throughout 1998 we continued to build the brands in our growing media and hospitality businesses, and increased our earnings by 13 per cent on the previous year.

"I'm happy to report that current trading has been very positive and we are well on track to deliver the numbers contained in our three year plan."

Mr Robinson aims to see the group achieve double-digit profits growth within the period.

He said this financial year had seen the strongest start for many years.

Story date: Monday 08 February

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