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International homewares retailer Zara Home is set to move into Leicester's Highcross shopping centre.

Zara Home, owned by Spanish retail giant Inditex, is in talks with Highcross owner Hammerson to take over the Rackhams department store, which will leave the centre.

Rackhams is spread over three floors, totaling just over 100,000 sq ft.

Zara Home is understood to be taking the ground floor space, where menswear, bags and beauty are currently.

The Mercury understands JD Sports is considering expanding its lower level shop into the basement area of the store, where women's clothing is located.

Zara Home has around 13 stores in the UK, mostly located within the M25. Its Leicester store will be its first in the East Midlands.

A spokeswoman for Hammerson said: "We continually look to refresh the mix of retailers in our shopping centres so that shoppers are able to enjoy the very best retail, dining and leisure experience."

People close to the situation say that although Zara Home has not yet signed a lease for the unit, it is the frontrunner to move into the Rackhams unit, when the House of Fraser-owned retailer moves out. Hammerson declined to give a date for the move.

Retailers in the surrounding High Street area said they were pleased about the news.

One, who asked not to be named, said: "There's been a lot of uncertainty about what's happening to the Rackhams store and this is really exciting. Zara Home is a great brand."

Zara, the main Inditex brand, which sells fashion and accessories, already has a large store on the upper level at Highcross.

The Mercury has also learned Hammerson plans to redevelop the service yard off High Street, pedestrianise it, bring in restaurants around a courtyard and link it into the new Zara Home store. The shopping centre developer has not yet submitted a planning application for the work.

Hammerson declined to comment about its further plans for Highcross. It was not possible to contact Zara Home for comment.