Tesco has submitted plans for a multi-million pound superstore on the edge of town despite the company’s biggest sales dip in decades.

The company’s share price fell by 15 per cent after its lowest Christmas sales figures for 20 years.

But the retail giant has said this will not affect plans to invest in Macclesfield and has submitted an application to replace its Hibel Road store with a Tesco Extra at derelict Barracks Mill on Black Lane, which was destroyed by fire in 2004. The store will be twice the size at 100,000 sq ft and built on stilts to allow 1,000 car parking spaces.

All existing 300 staff will move and Tesco estimates there will be an extra 200 new jobs, which it says will go to residents.

The existing store will be turned into  warehouse-style retail units  providing another 100 jobs.

The supermarket has also renewed  planning permission granted in 2008 for a new roundabout on the Silk Road.

A planning condition is that Tesco gives Cheshire East council money to improve the Middlewood Way.

Matthew Magee, Tesco corporate affairs manager, believes the company is responding to customers who want a bigger and better store.

He said: “These are exciting times for Macclesfield and we want to be part of the wider investment in the town.”

Tesco says it will provide  a subsidised ‘hopper’ bus to and from town and better pedestrian access.

It is also  working with the council to identify people who need jobs during its recruitment process, which will start three months before the store opens.

The store may ringfence some positions for the long-term unemployed to be guaranteed an interview.

A completion date for the store has not been fixed.

Critics fear the development will threaten small independent businesses and destroy the town centre.

MP David Rutley wants assurances it will fit with the town centre regeneration, which he says is a priority.

Mr Magee said: “This is a vote of confidence in Macclesfield and will bring people into the town who may otherwise go to big shopping centres like Handforth Dean.

“We will work with the town centre regeneration and want there to be a thriving town ­centre.

“We’re working with business groups so town centre shops benefit from the increased footfall and free parking.”

The council will consult on the application before a decision is made.