Value fashion retailer Store 21 is to launch concessions in 16 of Woolworths' high street stores, selling adult and teenage fashions, footwear and accessories.

The deal is part of Woolworths' ongoing strategy to make better use of the space in its large stores. 

The 3,000 sq ft concessions will be staffed by Store 21 employees, and will create around 130 new high street jobs.

James Collins, Woolworths' business development director, says: "This is a fantastic partnership that offers a host of benefits to both parties.

"Woolworths offers Store 21 fantastic high street locations and large volumes of customer traffic. Store 21 offers Woolies an extremely attractive customer offer.

"Value adult fashion and accessories is something which compliments Woolworths' product offering and we are therefore expecting strong trading results from the concessions."

General merchandise retailer Woolworths sells products ranging from home entertainment, to toys, confectionary and children's clothing from 815 stores.

It is currently in the midst of a strategic review after posting losses of GBP99.7m (US$177m) for the six months to the start of August.

Store 21 is part of the Indian-owned QS Group and operates 25 stores across the UK.