Clothing chains Peacocks and New Look are to open shops in Portishead.

The two companies have each taken a lease at one of four units being created in a former industrial building at Old Mill Road and are due to open their stores in August this year.

New Look will be opening a 6,000sq ft store, while Peacocks will have a store of 5,000 sq feet, bringing new jobs to the area.

Despite the challenging economic conditions, both stores are continuing to do well, with New Look claiming group sales increased by 14.5 per cent in the 14-week run-up to the new year. It has also been reported that sales at Peacocks jumped 22 per cent in the two weeks to January 2.

The third unit available – which has 4,500 sq ft of shop space – is under offer.

In the past it has been suggested that Next was also interested in setting up in Portishead.

A final 5,500 sq ft unit is vacant and is being marketed by Stephen Smart and Co.

The redevelopment of the industrial unit – previously occupied by a furniture manufacturer and importer – is costing £6.6 million and is being funded by Rowe Estates.

At least 50 new full- and part-time jobs would be created if all four units were occupied.

The redevelopment would include environmentally friendly features such as a ground-source heat pump (which draws heat from the ground into a building) and a wind turbine.

Despite the recession, Portishead has bucked the trend of national shop closures, with a number of new businesses opening in the town over the past several months.

Retailers are understood to have been attracted to the town because of the thousands of new homes which have been built as a result of the development of the docks and former power station.

Waitrose opened a store at Harbour Road in 2005. Jacks Brasserie opened at the Mirage building, Harbour Road, in August, while vets Watkins and Tasker opened another surgery in the High Street.

Cafe bar Me Me Chocolat opened on the ground floor of the Mirage building and a Costa Coffee has opened in the High Street. Children's clothes and accessories shop Zebra opened in May in the High Street as well as homewares and gifts store, Gosh, and trendy fashion store Duo.

The deal with both New Look and Peacocks to take over the retail units was led by commercial property development experts Quadrant Estates.

Quadrant Estates director, Christopher Daniel, said: "We are excited that despite the general economic conditions, our strategy of seeking viable developments in areas of wholescale regeneration has continued to prove successful."

Portishead Chamber of Trade and Commerce president Greg Corrigan said of the new development: "This is fantastic news for Portishead and I hope it will boost trade in the town.

"The new retailers will also help bridge the gap between the High Street and the new marina developments.

"We hope that by attracting new retailers to Portishead it will stimulate trade in the town and also attract people from other areas into Portishead to shop."