Bosses admit Shrewsbury store bid would hit rivals

A planned £10 million out-of-town superstore in Shrewsbury, creating up to 200 jobs, would hit the profit margins of its competitors by up to 10 per cent, a report said today.

And developers behind the proposed Hereford Road supermarket have admitted there will also be an impact on town centre traders. But they claimed it would not be 'significant' with profits being hit by less than three per cent by 2017.

The planning retail statement predicts the store would hit profits at Asda in Old Potts Way by seven per cent and Sainsbury's Meole Brace Retail Park store by as much as 10 per cent.

Six per cent of trade from the Little Waitrose supermarket in Pride Hill would also be lost, four per cent from the M&S foodhall and less than two per cent from the town centre Co-op store.

Developers Morbaine Ltd has lodged the outline planning permission for the supermarket on a site off Hereford Road.

No retailer has yet been chosen but bosses say the preferred operator is likely to be 'one of the big four' retail giants – Tesco, Sainsbury's, Asda or Morrisons.

In the planning and retail statement to Shropshire Council it says: "The most significant impact forecast within the PCA (Primary Catchment Area) would be upon the existing Sainsbury's foodstore at the nearby Meole Brace Retail Park at about 10 per cent its 2017 turnover, reflecting its proximity to the proposed foodstore and its status as the largest convenience goods retailer in the PCA."

But the report said the Sainsbury's store was operating at levels well above the company average and would continue to do so.

It said: "Consequently, even allowing for a 10 per cent loss of trade, it is forecast that the Sainsbury's foodstore would still be trading at levels 13 per cent higher than the company average in 2017."

The report added: "It is not considered that the proposed new store would have any significant impact upon the vitality and viability of Shrewsbury town centre."

See also:

• £10 million supermarket plan shock in Shrewsbury

• Leader: How many supermarkets does Shrewsbury need?