The low-cost clothing firm's boom goes against predictions of the current manufacturing recession spreading into the retail sector in the coming months.

More than 40 new stores are set to open in 2002

The expansion programme has been designed as a long-term move by the company, which plans to increase the number of stores from 344 to 700.

The company currently employs 5,000 staff, having taken on 1,400 staff in the past three years and opened more than 50 new stores.

Peacocks has targeted key locations in towns and cities for its latest expansion, without "cannabilising" existing Peacocks' sales, it says.

Peacocks' chief executive Richard Kirk said the company was going from "strength to strength".

Floated company

"At a time of job losses across the country, we are delighted to announce the creation of 1,000 new jobs as our business."

Peacocks is particularly strong in its native Wales and in London.

The company also has a deal with Woolworths to sell its clothing lines in the out-of-town Big W stores.

Peacocks was floated on the London stock exchange two years ago for the first time, valuing the company at more than �150m, and making chief executive Richard Kirk a multi-millionaire.