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Sainsbury’s Halts Hypermarket Construction

Published on Aug 13 2015 10:38 AM in Supply Chain tagged: Sainsburys / Lidl / Aldi

Sainsbury’s Halts Hypermarket Construction

As a result of what retail analysts have termed “the massive impact” of Lidl and Aldi on the British FMCG sector, Sainsbury’s has abandoned plans for an 80,000-square-feet hypermarket in Middlesborough, bbc.com reports.

The operation has been cancelled on account of it being no longer as “viable” as it was when it was conceived. Sainsbury’s has already constructed the carpark on the property.

A spokesperson of the firm stated, "We have not taken this decision lightly and are very disappointed we are not able to open a new shop in Middlesbrough. 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."

John Heagney, the prominent UK retail consultant, 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," he added.

© 2015 European Supermarket Magazine – your source for the latest retail news. Article by Peter Donnelly. To subscribe to ESM: The European Supermarket Magazine, click here.

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