Business prospects in Mitcham could be looking up, with the arrival of a new supermarket chain.

Somerfield supermarket is set to be taken over by Morrisons in the coming months.

Merton Council welcomed the move and said that jobs at the store were now safe.

A Morrisons spokesman said staff would be retained and given “welcome meetings, one-to-one sessions and full company inductions” by the new owners.

On January 23 staff at the store in St Mark’s Road said the takeover had not been confirmed to them, although rumours had been circulating their store might be bought by the Yorkshire based chain.

Deputy leader of Merton Council, Councillor Samantha George, said: “We whole heartedly welcome Morrisons to Mitcham. The town has a great deal to offer along with growing potential as somewhere to do business.”

The sale has been prompted by the expected purchase of Somerfield by the Co-operative supermarket group. Competition laws will force the Co-Op to sell off more than 130 Somerfield stores if the deal is confirmed by the Office of Fair Trading.

The site of the supermarket is currently owned by rival chain Asda. Plans for a wholesale regeneration of Mitcham town centre ground to a halt last year, as a development scheme for the area could not find commercial backers.