A well-known car dealership in Dereham is set to close - and could be replaced by a supermarket.

Busseys, which offers Ford and Peugeot car sales and servicing across Norfolk, could shut its Yaxham Road branch as soon as next month.

Eastern Daily Press: The Busseys dealership in Yaxham Road, DerehamThe Busseys dealership in Yaxham Road, Dereham (Image: Archant)

There are no plans to relocate to a new location, and all existing staff will be offered roles at one of the company's other showrooms in Fakenham, Norwich or Attleborough.

Managing director Paul Bussey said maintaining a sales operation in Dereham "does not fit with the future plans" of Ford or Peugeot.

With Busseys set to depart, Lidl has lodged plans to take on the site and demolish the existing buildings to make way for a new store.

The discount supermarket chain already has a shop in Dereham, just a few hundred yards away on Kingston Road, but wants to "enhance" its provision in the area.

Eastern Daily Press: The existing Lidl store in Kingston Road, DerehamThe existing Lidl store in Kingston Road, Dereham (Image: Archant)

A spokesman for Lidl said: "We are delighted to confirm our intention to enhance our offering in Dereham with the development of a new and improved store, which would replace our existing store on Kingston Road.

"We look forward to updating the community in due course, as we progress with our plans to provide residents with an even better in-store experience."

Documents submitted to Breckland Council show Lidl's new supermarket would have 120 parking spaces, with customer access maintained via the existing entrance in Yaxham Road.

The store would be open 7am to 11pm Monday to Saturday, and from 10am to 6pm on Sundays.

Eastern Daily Press: Paul Bussey, managing director of BusseysPaul Bussey, managing director of Busseys (Image: Archant)

Offering further explanation for his company's decision, Mr Bussey added: "The motor industry is in a period of rapid transition to electric vehicles.

"This, together with the changing habits of customers and competitors, is driving huge changes in how new vehicles are sold.

"Whilst here in Norfolk we have tried to maintain some stability, we are not immune to these changes. We at Busseys simply have to adapt our business to continue serving our highly-respected customers.

"Loyal customers to our Dereham branch may see this as an inconvenience. All we can ask is that they give us the opportunity to show them the benefits of this change and how it will provide them with a better service."