Tesco abandon plans for new store

Tesco abandon plans for new store

14 January 2015

TESCO has abandoned plans to build a new 15,000 sq. ft. store in Carryduff.

The retail giant had identified a site at the Saintfield Road to build a new store and secured planning approval, but the company confirmed last week that it has pulled the plug on the proposal.

Tesco has also aborted plans for a new store in Armagh with last week’s announcement coming after the company confirmed major cutbacks to its supermarket chain across the UK.

Tesco is shelving plans to open 49 new shops, one of which includes the Carryduff store, which was viewed as meeting a major need for one of the Province’s most rapidly expanding areas.

The decision to axe the Carryduff proposal comes after Tesco revealed falling sales and also issued profit warnings.

Tesco chief executive, Dave Lewis, said it was with a “heavy heart” he had to announce the company was unable to proceed with its planned new store development in Carryduff.

“Our performance as a business has fallen significantly short of where we would want it to be. My absolute imperative has to be to protect the future of our business for the circa 300,000 colleagues we employ in communities all over the UK,” he said.

Mr. Lewis added: “I know this news will be a real disappointment to many people in Northern Ireland and we’re extremely grateful for the support we’ve received for our plans.

“I am very aware of the importance of these sites and am determined that we will work closely with the respective councils to find the right solutions for both Armagh and Carryduff.”

Tesco’s decision not to proceed with the Carryduff proposal has been welcomed by the Northern Ireland Independent Retail Trade Association (NIIRTA).

Mr. Glyn Roberts, NIIRTA chief executive, said members had expressed concern about the plans for both the Carryduff and Armagh stores and the impact they would have on local trade.

He continued: “Northern Ireland passed the multiple supermarket saturation point a number of years ago; the market was not simply there to sustain the sheer volume of new stores

“There have been big changes in the grocery retail landscape with a big in consumers doing the ‘big’ weekly or fortnightly shopping trip. Shoppers are increasingly grocery shopping every three to four days and using local independent stores and discounters.”

Mr. Roberts said local independent retailers were raising their game to provide better prices and customer service.

He added: “The retail market is undergoing the biggest change in its history and the key challenge for independent and multiple retailers is to show innovation and embrace that change.”