NATIONAL soft furnishing giant Dunelm will open its first store in Blackburn before Christmas as the flagship of a number of new shops across the town centre.

The Leicester-based firm is now working on its new outlet on the Peel Centre, Lower Audley Street, which at 30,600 square feet is one of the largest of its 144 across the UK.

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The news comes as The Mall confirmed three new shops, bringing its vacancy rate to below five per cent, the lowest for two years.

Independent music retailer Head, footwear brand tReds and perfume specialist Equivalenza will all open in the next few weeks and talks are close to completion for another new retailer.

The arrival of Dunelm and the three new Mall shops has been hailed by politicians and business leaders as a sign of growing retailer confidence in the regeneration of Blackburn town centre around the £33million Cathedral Quarter development.

They have said it is proof that the ‘buzz is coming back to Blackburn’.

Mall management also confirmed that the Waterstones Sales Outlet, which opened with a fanfare last winter, will stay after itsinitial 12-month lease expires.

Hopes are high for an upgrade following a successful trading year.

A string of new shops around the town centre has also seen the number of empty shop premises in Blackburn town centre drop from 27.7 per cent in June 2012, one of the 10 highest in Britain, to 17 per cent, the North West average.

Council bosses are confident of another reduction by the year end with deals to fill vacant units close to being signed.

Blackburn Chamber of Trade president Tony Duckworth said: “I am delighted that these new businesses are coming to the town.

“It shows that confidence is growing in Blackburn as the retail centre for the region.”

The town’s MP Jack Straw said: “This is great news. Dunelm is an important business.

“It shows big store chains are increasingly confident in the future of a redeveloped Blackburn town centre.”

Blackburn is Open boss and international designer Wayne Hemingway, who grew up in the town, said: “This is clearly good news “It is another step in our plans to build a vibrant 24-hour town centre.”

Borough council regeneration boss Maureen Bateson said: “I am delighted Dunelm is coming.

“Their arrival and that of other new stores shows growing business confidence in our redevelopment plans.

“The buzz is coming back to Blackburn town centre.”

Dunelm is spending tens of thousands refurbishing the former Staples store on the Peel Centre for opening on December 9 creating 80 jobs.

With a mezzanine floor and coffee shop, it will sell the company’s full range including Dorma bedding, Fogarty, Morphy Richards and Brabantia with designs from Dunelm’s own exclusive collection.

The new store will provide made to measure curtains, blinds, more than 4000 fabrics, furniture, cookshop and dining items.

Dunelm chief executive Will Adderley said: “We are excited about the new store. We are confident Blackburn will play a big part in the continued success of the company.”

Head will open in King William Street in mid-October, creating seven jobs and showcasing Lancashire artists.

Operations manager Simon Dullenty said: “We’re really excited to be opening our sixth store at Blackburn. We’re passionate about discovering and nurturing upcoming local talent.”.

Dorset-based tReds will open on Saturday October 4 providing 10 jobs and selling brands including VANS, Converse, Nike, Ugg, and Skechers.

Managing director Steve Kavanagh said: “We took the decision to open in Blackburn as a vibrant environment. There is a buzz we wish to be part of.”

Mall general manager Loraine Jones said: “We have attracted several new retailers in recent months. B & M opened a new store. Warren James and Works are upsizing.

“Our vacancy rate is less than five per cent, its lowest for two years.”

New businesses in the council’s target 12-point plan area around Northgate and King William Street include Maude Boutique on Sudell Cross, Oddies Bakery in New Market Street, Blossom Florists in King William Street and Boomtown Basement Records on Sudell Cross.

Across the wider town centre Izyz Boutique has come to Jubilee Street, Mum’s the Word to Darwen Street, Floorz n Doors to Mincing Lane, Top End Trader to Market Street Lane, Davinci to King William St and West Coast to Lord Street.