Sainsbury’s has postponed plans to develop a new regional DC on the outskirts of Exeter, two years after receiving planning permission, as it now has no immediate need for a depot in the area.
The supermarket was granted permission to develop a 528,000 ft² DC in Clyst Honiton in September 2011 to serve its supermarkets in the South West.
It claimed that it had “invested significant sums” in preparatory works, but this month decided to postpone the development of the site until it experiences significant demand in the area.
However, the supermarket told Motortransport.co.uk that it was planning to develop more sites in other regions within the next two to five years as it reviews its distribution network.
Vince Prior, head of property investment, said: “We are continually reviewing our logistics network to enable us to drive improved service to stores, support our business plans, increase efficiencies and deliver savings that will allow us to further invest in our customer offer. In light of this, we have concluded that there is no immediate requirement for a depot in this location at this time.”
“Although this news is disappointing, our research shows that there could be future demand for a depot in this location.”
It is currently working with East Devon District Council to review the plans, which were expected to create 450 jobs on completion of the development.
