Costco quits Trafford Park

News

24 July 1993

Costco had agreed to take a site at Gazeley Properties’ NorthWest Direct scheme in Trafford Park, and the local development corporation had resolved to grant planning consent.

But the DOE called in the application last March. Gazeley director Peter Gomersall said “the call-in process would have resulted in an unacceptable delay for Costco”.

Costco’s application in Borehamwood, Hertfordshire, has also been referred to the DOE because it contravenes Hertsmere council’s local plan. No decision has yet been made on whether the application will go to public inquiry.

But, last week, the DOE launched its new retail planning guidelines – PPG6 – which clarify the status of warehouse clubs. Under PPG6, they are to be treated as any other retail operation.

Paul Moulton, managing director of Costco Europe, welcomed PPG6. “We think it’s helpful,” he said. “There’s been a lot of uncertainty among landowners and planning authorities. At least now we’re defined officially.”

It is already becoming clear that a new debate is about to break out as to how PPG6 should be interpreted. Moulton insisted that PPG6 does not say that warehouse clubs are retail operations, merely that for purposes of traffic and impact they should be treated as if they were retail.

Moulton added that there was no reason why PPG6 should interrupt Costco’s plans for a site next to Lakeside, Thurrock. The local authority granted consent on the basis that Costco is running a warehouse operation, a decision which is to be challenged by Sainsbury, Safeway and Tesco in the Court of Appeal at the end of this month.

John Littman of Rapleys, who is advising the food retailers, also welcomed PPG6. “This new policy confirms the position we have taken from the outset,” he said. “We believe that, as warehouse clubs operate as retailers, they must be subject to the same criteria and controls.”

Costco, the US-based warehouse club operator, has abandoned plans for a 122,800-sq ft store in Manchester’s Trafford Park following planning delays. And the new PPG6 guidelines may put other such schemes in jeopardy, writes Graham Parker. Costco had agreed to take a site at Gazeley Properties’ NorthWest Direct scheme in Trafford Park, and the local development corporation had resolved to grant planning consent. But the DOE called in the application last March. Gazeley director Peter Gomersall said “the call-in process would have resulted in an unacceptable delay for Costco”. Costco’s application in Borehamwood, Hertfordshire, has also been referred to the DOE because it contravenes Hertsmere council’s local plan. No decision has yet been made on whether the application will go to public inquiry. But, last week, the DOE launched its new retail planning guidelines – PPG6 – which clarify the status of warehouse clubs. Under PPG6, they are to be treated as any other retail operation. Paul Moulton, managing director of Costco Europe, welcomed PPG6. “We think it’s helpful,” he said. “There’s been a lot of uncertainty among landowners and planning authorities. At least now we’re defined officially.” It is already becoming clear that a new debate is about to break out as to how PPG6 should be interpreted. Moulton insisted that PPG6 does not say that warehouse clubs are retail operations, merely that for purposes of traffic and impact they should be treated as if they were retail. Moulton added that there was no reason why PPG6 should interrupt Costco’s plans for a site next to Lakeside, Thurrock. The local authority granted consent on the basis that Costco is running a warehouse operation, a decision which is to be challenged by Sainsbury, Safeway and Tesco in the Court of Appeal at the end of this month. John Littman of Rapleys, who is advising the food retailers, also welcomed PPG6. “This new policy confirms the position we have taken from the outset,” he said. “We believe that, as warehouse clubs operate as retailers, they must be subject to the same criteria and controls.”