THE former Terry's sweet store in York looks set to be leased to the National Railway Museum.

Bosses at the museum have announced they want to expand their retail facilities into York city centre.

The shop, which used to be the Wax Lyrical premises, was the site of Terry's retail arm from 1824 until 1981.

The building is owned by Lloyds TSB, on whose behalf Blacks Property Consultants have agreed the lease with the award-winning museum.

Customers should be able to browse through the museum's merchandise as early as late summer, once the lease is signed.

Janice Murray, deputy head of the NRM, said as the museum's current shop became increasingly successful, the body needed to expand its services.

"The range of merchandise sold in the current shop has improved dramatically and it is now time to extend the services we offer to our customers," she said.

"The ideal location to expand the business is the city centre and No. 3 St. Helen's Square provides the perfect opportunity to do this.

"We are hoping to raise people's awareness of the NRM through more presence within the city centre, and also to encourage more visitors," Ms Murray added.

"It is part of a wider aim for growth within the museum as a whole and should generate more income that can then be reinvested in the development of the attraction itself.

"In even broader terms, it is also an exciting development for York because it should indirectly benefit the economy of the city too."

Updated: 14:51 Friday, July 11, 2003