Retail giant Tesco has been refused permission to extend a recently opened supermarket in Wales.
Denbighshire council’s planning committee voted by majority to reject a detailed planning application for the site adjacent to Tesco’s Ruthin store which opened in August this year.
Out of 21 members, 18 voted against the application on the basis that the extension could have a negative impact on other stores in the town centre and cause a loss of land used by local businesses.
A spokesman for Tesco said the application was a “speculative development”.
The spokesman said, if the application had been approved, Tesco, who do not own the site, would have considered buying it.
The council monitoring officer is considering taking the decision to full council – an option if one of the grounds for rejecting the application is considered unsound – putting the council in danger of having costs awarded against them on appeal.
The decision comes as the Competition Commission continues an investigation into whether supermarkets have stifled competition by assembling “land banks” or frustrating attempts by rivals to build supermarkets in specific towns.
On Tuesday Tesco reported its half-year profit had risen 10.3% to £1.09bn, with an overall sales rise 12.7% and profits at its overseas businesses rising 21.1%.
References: EGi News 05/10/06
