Electrical retailer Dixons said rent rises and increasing competition had forced it to move out of its Northbrook Street store, in favour of a giant new Dixons XL store in Greenham.

Dixons has endured a “prolonged period of disappointing trade” in town centres, while other parts of the group, such as Currys and PC World, are performing well in out of town sites. It decided to close a third of its shops last April, despite a mini-revival caused by huge demand for digital cameras.

Mothercare and Next have both been lured by Newbury Retail Park, and Dixons XL will go in a new warehouse currently being built next to Boots. Wickes and Matalan had also expressed an interest.

The success of Newbury’s out of town shopping persuaded retail park owner Friends Provident to add on another “wing”. Staff are expected to transfer to the new store later this year.

The Northbrook Street store will be marketed to fashion boutiques and coffee chains, among other retailers.