TAVISTOCK'S most well known store, Crebers, which has been trading in the town since 1881, is downsizing to share its premises with a local pound shop.

Owner of the delicatessen Robert Creber said this week it was a sign of the times and the building was not paying its way.

In September the double frontage in Brook Street, which has been part of Crebers since 1881, will be shared with local business PAYless Discount Store, formerly Val's Around a Pound, currently on the fringes of the town's pannier market.

Mr Creber said this week: 'The decision was an economic one, times are tough and things are definitely not what they used to be, everybody knows that.

'We have a building that is not paying its way so we had to make a decision. We will be trading exactly as we are but in a smaller format.

'Our shop will concentrate on the delicatessen and the chilled food — which is absolutely thriving and doing well — and all our home-made produce.

'In essence, the business is consolidating. We are very much trading and doing well but intend to become more efficient and use the building more sensibly.

'It's a very big property and we had find a way to make it pay for itself.'

The move will see PAYless triple the size of its business and the creation of its first jobs.

Val and Piers O'Neill, who founded the business in April 2011, have extended their range of goods at the convenience store to respond to demand when the recession hit.

They now even offer a delivery service for local shoppers.

They are using Crebers' own signwriting to keep the traditional look outside while inside will be all PAYless' own branding.

Mr O'Neill said: 'It is excellent news for us. We have been negotiating with Robert for a good few months and we have come to a fair agreement. It is a difficult one for him, but eventually we came to a good decision.

'Our current shop is a great shop with great local customers but we are not in the best location and in order for the business to grow we need prominence and space.'