Asda 'pulls out' as Tesco grows

The Oxford Times: The derelict factory at Bessemer Close The derelict factory at Bessemer Close

A SUPERMARKET has pulled out of talks over a derelict site in Bicester after Tesco’s expansion plans were revealed, it has emerged.

Asda has confirmed it had looked “quite seriously” at opening a store in Bicester but the expansion of Tesco “put paid” to its plans.

The move comes after John Harvey, who owns the freehold of the former Lear Corporation factory, in Bessemer Close, off Launton Road, objected to plans to double the size of Tesco and relocate it from Pingle Drive.

Earlier this month co-ordinated planning applications by Tesco and Bicester Village, to expand the outlet, move Tesco opposite its site, and carry out £11m of road improvements were approved by Cherwell District Council.

The move angered supermarket giant Sainsbury’s, which is the anchor store in Bicester’s £70m town centre redevelopment. Work at the site, which includes shops, restaurants, a cinema and 500-space carpark, is underway and it is expected to open this summer.

In a letter to the council, Mr Harvey said: “I am writing to let you know how the above application has effected not only my site but potentially other redevelopment sites in the town.

“We have been in discussions with two food retail companies who are currently not present in Bicester about developing my site – Asda and Waitrose. Both companies believe that there is available capacity for another player in the local food market based on the current available food retail capacity and the population figures for the area.

“We even got to the stage with one of the companies of getting board approval to make a planning application.

“However, while our scheme was being finalised the Tesco plans were announced and both companies said that they were not prepared to invest in a town or at any location which had a Tesco that was so large that it would dominate the town.”

Asda’s spokesman said: “We have been interested in the area of Bicester. We haven’t ever got to the concrete plans stage where had to put some plans forward. The alternative at the outlet centre put paid to those plans.”

Comments (4)

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1:13pm Thu 17 Jan 13

Mark L. says...

Tesco's selling their current site to Bicester Village and relocating to a new site in the new development has been on the cards for years. I discussed the idea with the Manager there when I lived in Bicester. I moved away four years ago.
Tesco's selling their current site to Bicester Village and relocating to a new site in the new development has been on the cards for years. I discussed the idea with the Manager there when I lived in Bicester. I moved away four years ago. Mark L.

1:38pm Thu 17 Jan 13

dkp.live@hotmail.co.uk says...

What are the odds of Tesco winning the Grand National this year?
What are the odds of Tesco winning the Grand National this year? dkp.live@hotmail.co.uk

1:46pm Thu 17 Jan 13

martin.risigovier says...

"Tesco's selling their current site to Bicester Village and relocating to a new site in the new development...."

Actually if you look at the land registry Value Retail who own Bicester Village also own the land that Tesco currently occupy so they can't be selling it.
"Tesco's selling their current site to Bicester Village and relocating to a new site in the new development...." Actually if you look at the land registry Value Retail who own Bicester Village also own the land that Tesco currently occupy so they can't be selling it. martin.risigovier

2:44pm Thu 17 Jan 13

Andrew:Oxford says...

martin.risigovier wrote:
"Tesco's selling their current site to Bicester Village and relocating to a new site in the new development...."

Actually if you look at the land registry Value Retail who own Bicester Village also own the land that Tesco currently occupy so they can't be selling it.
I suspect you are confusing the sale of property with the sale of a lease.

When you have leased commercial property for a specific period and choose to exit (or offered an incentive to exit) the property prior to the end of the lease, the remaining term has a commercial value that can be sold.
[quote][p][bold]martin.risigovier[/bold] wrote: "Tesco's selling their current site to Bicester Village and relocating to a new site in the new development...." Actually if you look at the land registry Value Retail who own Bicester Village also own the land that Tesco currently occupy so they can't be selling it.[/p][/quote]I suspect you are confusing the sale of property with the sale of a lease. When you have leased commercial property for a specific period and choose to exit (or offered an incentive to exit) the property prior to the end of the lease, the remaining term has a commercial value that can be sold. Andrew:Oxford

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