Waterstones is to open a 7,000 sq ft flagship store on London’s Tottenham Court Road in October.

The three-floor store will be the largest Waterstones has opened in London since 2009, when it unveiled its Oxford Street Plaza shop.

The books retailer has struggled as it fights against the dominance of Amazon and e-readers. Boss James Daunt has maintained that the UK needs a national book chain and has led a turnaround that has seen a focus on local retailing. After years of losses Waterstones is expected to break even this year.

The yet to open Tottenham Court Road branch aims to take advantage of the “radical transformation” of the area, according to Waterstones London regional manager Luke Taylor.

Tottenham Court Road has a revamped Tube station and is expected to benefit from the new Crossrail transport system when it launches in 2018. A raft of retailers have opened in the once shabby area, including Zara and Primark.

The Waterstones store will feature a bar along with a Café W.

Taylor said: “I have no doubt that this will be one of the city’s best bookshops.”