The 42,000sq ft store, at the former Archers premises on Pearse Street, is the sixthlargest Penneys store in the country, with more floor space than outlets in Galway, Sligo and Castlebar.

"Ballina provides an ideal location for Penneys as it meets our requirements for store locations and is already a popular destination for our key demographics, " says company director, Breege O'Donoghue.

She says the company plans to further increase its profile in the west of the country. "We constantly monitor trends in population and economic growth. We would like to expand our retail footage in Sligo, Castlebar and Galway."

The retail chain has opened new stores in Mullingar, Swords and Dundrum Town Centre in the past 18 months.

Primark, which trades under the Penneys brand, employees 3,700 people in Ireland.

The Ballina store will provide 83 jobs in the Mayo town.

Penneys is now planning to open further stores in Derry and on Oxford Street in London.

Fears that Penneys will detract from local retailers have been dismissed by the local chamber of commerce.

"The retailers in the town are delighted and can't wait for bigger and better things for the town. The more footfall on the street the better for everyone. It's a significant investment in the town and is a great confidence boost for Ballina, " says chamber of commerce spokesperson Louise McDonnell.