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Sainsbury's abandons Middlesbrough superstore | |
(about 1 hour later) | |
Sainsbury's has abandoned an 80,000 sq ft superstore on Teesside despite completing construction of the building and its car park. | |
The supermarket chain said the site in Middlesbrough is "no longer viable" blaming changing UK shopping habits. | |
Middlesbrough Council approved the plans in 2013 and intended the store to form part of a £35m redevelopment of the Middlehaven area. | Middlesbrough Council approved the plans in 2013 and intended the store to form part of a £35m redevelopment of the Middlehaven area. |
It said it now hoped another retailer would take on the site. | It said it now hoped another retailer would take on the site. |
"We have not taken this decision lightly and are very disappointed we are not able to open a new shop in Middlesbrough," a Sainsbury's spokesman said. | |
"Since the proposals were first announced, shopping patterns have changed considerably and following a review, the scheme is no longer viable for us. | "Since the proposals were first announced, shopping patterns have changed considerably and following a review, the scheme is no longer viable for us. |
"We are now marketing the building to interested retailers and will focus support on our Wilson Street store." | "We are now marketing the building to interested retailers and will focus support on our Wilson Street store." |
'Dynamic changed' | |
The council unanimously backed development plans for Middlehaven in November 2013, including the Sainsbury's store and filling station, a KFC drive-through, coffee shop and restaurant. | |
Councillor Charlie Rooney, executive member for regeneration, said: "It absolutely is a disappointment, but we need to move forward and not keep looking backwards at what might have been. | Councillor Charlie Rooney, executive member for regeneration, said: "It absolutely is a disappointment, but we need to move forward and not keep looking backwards at what might have been. |
"It's still a good site and we can market it as a good site." | "It's still a good site and we can market it as a good site." |
Retail consultant John Heagney said major supermarket chains are facing increased competition from discounters such as Lidl and Aldi. | Retail consultant John Heagney said major supermarket chains are facing increased competition from discounters such as Lidl and Aldi. |
He said: "Nobody foresaw the massive impact of the European discounters and the old monthly shop has virtually gone out of the window as people shop little and often. | He said: "Nobody foresaw the massive impact of the European discounters and the old monthly shop has virtually gone out of the window as people shop little and often. |
"The whole dynamic of retailing has changed." | "The whole dynamic of retailing has changed." |
Morrisons, Asda and Tesco have also announced a scaling back of new store openings and the closure of less profitable shops in the face of discounters winning greater market share. |