Tesco cancels long-standing plans for West Midlands stores

BELEAGUERED supermarket giant Tesco has revealed that it is pulling the plug on plans to build new supermarkets in Birmingham and Wolverhampton.

The retailer said yesterday that it will be closing 43 unprofitable stores across the UK and also shelving plans to open a further 49 stores.

Plans for supermarkets on the Monaco House site in central Birmingham and on the site of the former Wolverhampton Royal Hospital have now been ditched.

The Birmingham store was to be on the site of a former office building on Bristol Street, near the city centre.

The retailer finally won a ten year battle to build a supermarket in the area when it won permission to develop the Monaco House site – which it owns – just over a year ago.

Commenting on its decision not to proceed with its plans for the site, Tesco chief executive Dave Lewis said:  “I know that this news will be a real disappointment to many people in the local community and we’re extremely grateful for the support we’ve received for our plans.

“I am very aware of the importance of the site to the area and I am determined that we will work closely with Birmingham City Council to find the right solution for the local community.”

Tesco has also pulled out of its £65m Wolverhampton Royal Hospital scheme.

It had planned to build a new supermarket at the site of the former hospital in the All Saints area.

It was hoped the development would help to regenerate a run down part of the city.

But the retailer said it had taken “a very difficult decision” not to proceed with the development and would be working with Wolverhampton City Council to find alternative uses for the site as soon as possible.

Councillor Roger Lawrence, leader of Wolverhampton City Council, said: “We are extremely disappointed and angered by the decision of Tesco not to proceed with the Royal Hospital development, particularly given their long standing commitment to invest in the city.

“The council has done everything in its power to support Tesco to proceed with their plans, and I and senior council officers will now be seeking urgent discussion with Tesco about how to take forward the development of this key gateway site.”

Tesco has owned the site for 13 years and the scheme has been the subject of numerous delays since Tesco first unveiled plans for a store there more than ten years ago.