Discount food retailer Aldi has unveiled plans to open a third store in Chester .

Flyers have been sent to residents near the proposed site which would take the place of the Parkgate Road Mercedes Benz dealership, which is moving to Cheshire Oaks next year.

Aldi already has a store at nearby Bumpers Lane and a second outlet off Tarvin Road in Boughton .

The latest food store, representing a ‘multi-million pound investment’, would be close to Blacon and the University of Chester student population and could prove a fearsome competitor for neighbouring supermarket Morrisons .

The Mercedes Benz Chester dealership in Parkgate Road.

But there may be some concerns at the traffic that would be generated by the business, which will feature a free 109-space car park.

A public exhibition is being held this Thursday (September 29) at St Oswald’s and St Thomas of Canterbury Church, Parkgate Road, between 2.30-6.30pm.

The flyer states: “Aldi, the award-winning discount food retailer is currently preparing a proposal for a new food store with associated car parking off Parkgate Road in Chester. The site is currently occupied by a Mercedes Benz dealership, which is due to close.”

Aldi says its store would complement the existing retail offer and provide more choice for customers with an emphasis on ‘deeply discounted quality products’. The German-owned company claims its shoppers typically save between 30-40% on their bill compared to larger supermarket chains.

The lay-out of the proposed Aldi supermarket in Parkgate Road, Chester, according to the flyer.

Aldi estimates the store would generate up to 40 jobs in store plus construction and supply chain employment opportunities.

The proposed design would comprise a single storey building with materials including white render with a 'feature brick panel' and glazing to create a modern appearance. Opening hours would be between 8am and 10pm, Monday to Saturday, and 10am to 4pm on Sundays.

The flyer adds: “Aldi currently has stores at Bumpers Lane and Tarvin Road, both situated in Chester. These stores are very popular and Aldi believes the introduction of a new store off Parkgate Road would meet an identified need in the area, provide additional shopping choice for local people and reduce the need for existing Aldi customers to travel further to complete their grocery shop.”

Aldi is one of the world’s largest privately-owned companies with 7,000 stores worldwide including more than 600 in the UK. Aldi says its business model is based on selling a limited range of quality goods acquired at the lowest prices enabling these savings to be passed on to customers. The company has won many awards including Grocer of the Year 2016.