Walton's Beales department store is to close to make way for the Heart of Walton shopping centre.

The store, which has been in the town since 1979, will cease trading on January 14 next year.

It has agreed an early surrender of its lease to landlord and Heart developer O&H Properties for £575,000.

The lease was due to run out in 2007.

Subject to planning permission the store could be demolished and replaced with a retail space twice the size.

The main chunk of the £100 million shopping centre is due to open next autumn with the section currently occupied by Beales set to open in about early 2007.

The store's director Jane Hall said it had not been commercially viable for the company to remain trading on the premises.

She said: "We are actively looking at other premises in Walton although we haven't found any yet."

Ms Hall said the company could only look at retaining 80 members of staff if new premises could be found.

The company, which has 12 stores nationwide, suffered a dip in performance last year announcing pre-tax profits of £260,000 for the year ending October 2004 compared to £1.08 million in 2003.