Value supermarket Safeway is taking over one of the most prestigious shopping spots in Sussex.

Ikea and Harvey Nichols had been mooted as possible upmarket tenants for the Quadrant site in North Street, Brighton, which overlooks the Clock Tower.

Councillors and shoppers have expressed surprise that Safeway, owned by discount chain Morrisons, has been selected for the prime location.

The outlet will be less than half a mile from another Safeway in St James's Street and the same distance from a giant new Sainsbury's, being built on land behind Brighton station.

Paul Elgood, leader of the Liberal Democrats on Brighton and Hove City Council, said: "This is the prime site in the city centre. We should have made sure we made it as attractive as possible."

Another councillor said: "Safeway isn't the name I was expecting to see dominate that site. Don't quote me by name but I thought we were going to get some sort of Harvey Nichols."

Safeway had signed with developer Wildmoor to take a large chunk of the retail site before being bought earlier this year for £3 billion by Morrisons.

The Bradford-based chain, whose mission is to deliver "The Very Best For Less", is looking at the future of all of its newly-acquired outlets.

Morrisons spokesman Paul Keenan said: "Safeway has signed up for the Quadrant but we are reviewing it as part of a general estates review."

Tory councillor Geoffrey Theobald said a supermarket would be good for people living in the area but he would have preferred smaller, individual shops on the site at the heart of the city's main retail area.

Some shoppers were also disappointed.

Roberta Emmott, 21, from Henfield, said: "Brighton attracts people because of its unique shops.

"Having a supermarket in one of the most prominent positions is not going to attract anyone.

"A Harvey Nichols would have been brilliant and it would have been different.

"Supermarkets are things we want to see less of, not more. It's bound to have an effect on local businesses."

Donald Thoms, 64, of Grand Parade, Brighton, said: "It does seem excessive to have yet another supermarket.

"We have a cut-price shop in North Street and others in Western Road for those who can't fork out.

"This certainly won't help the town centre's image."

But Alison Gladstone, 44, of Seven Dials, Brighton, said: "You need shops in the city centre that aren't exclusively for car drivers.

"If I want to get a bunch of carrots or a tin of beans I have to go somewhere that's really expensive or miles away.

"I think it's great they are catering for people without cars who still need shopping.

"There are loads of people living in flats in the city centre now who find it more and more difficult to have cars and need shops like this."

Wildmoor declined to comment on the Safeway tender or other issues at the controversial site.

The Argus reported last week how builders at the site accidentally filled a ten-metre stretch of sewer in Queen's Road with concrete.

Repair work, blocking a lane of traffic, could take six weeks. No work has been done for three weeks after the building contractor went into liquidation.

Wildmoor, based in Chelsea, London, is understood to be close to hiring a firm to complete the project.

Building control manager Andrew Wilkinson, who acts as an independent inspector for the scheme, said the problems would probably push the expected completion date of Christmas back to next spring.

He said work should restart later this month.

Wildmoor spokesman Richard Jones, asked about Safeway, the concrete blunder and the builders going into liquidation, replied: "Our policy is to make no comment on developments."

The Quadrant project was approved by councillors late last year after months of wrangling. It had been thrown into disarray when councillors rejected the initial designs as too ugly.

Construction had already begun and the developer threatened to appeal to Deputy Prime Minister John Prescott.

The council's planning committee finally approved amended designs for the complex.