Shoppers in south Wales could be buying Christmas presents at the new Cardiff IKEA store next year.

Outline planning permission was granted in October for the new 26,000 square metre store in Cardiff Bay, and no objection has been raised by the Welsh Assembly.

Provided detailed plans can be agreed with Cardiff County Council before the end of December, the Swedish company will set itself target of completing construction at the Ferry Road site by Christmas 2003 - several months earlier than had been expected.

IKEA stores grace 29 countries

Building work could begin early in the new year, with the first of the 500 staff being recruited by next summer.

"We are absolutely delighted that the assembly has decided to clear the way for the store and now we are keen to open the Cardiff store's doors to our first customers," said IKEA's UK managing director, Goran Nilsson.

"The first construction jobs could arrive as soon as January. We are talking to the council about our recruitment plans and will be working closely with them and the employment services," he added.

The new store - to built on the site of an old gasworks in Grangetown - will be 50% bigger than the nearest existing outlet in Bristol, and will be the third largest in the UK.

The development is part of a scheme to build 20 new stores in the UK, creating 10,000 jobs in 10 years.

In an effort to put stores where their customers wanted them, the company used its website last year to ask for suggestions of suitable development sites.