A €15 million mixed retail and residential development by Connacht Gold, the west of Ireland co-operative, is expected to lead to the creation of 60 jobs.

In what the company describes as a "significant departure" from its traditional business model, Connacht Gold says it will build an 18,000 sq ft supermarket and shopping centre and an apartment complex in Swinford, Co Mayo.

The project, which will see the closure of the town's livestock mart, is a response to the "new environment" created by reform of the Common Agricultural Policy and an anticipated need for alternative income sources, the co-op said.

Swinford mart, acquired by Connacht Gold eight years ago, will be the third to have been closed by the co-op in the last year. Ballyhaunis mart was sold for industrial development and Claremorris mart acquired by Mayo Co Council for an inner relief road. Swinford will remain open until the end of the year.

Connacht Gold says the new supermarket will be operated by a "leading Irish retailer", although it declined to provide a name. Seven adjoining retail units are planned.

The residential complex, will include 26 townhouses and an apartment block built around a courtyard.

Mr Aaron Forde, Connacht Gold chief executive, said the project would enhance Swinford's standing as a thriving commercial hub.

He added: "With this development the public, including the shareholders, will be offered a distinctively Irish and local retail experience with the emphasis on providing a wide choice of top-quality consumer products."

Connacht Gold reported a 2.17 million operating profit in 2003, compared to a €1.1 million operating loss the previous year. Pre-tax profit was 1.71 million, from 1.15 million in 2002.