Sainsbury’s has pulled out of plans to build a 528,000 sq ft distribution centre in Devon following a review of its logistics.
The supermarket giant is reviewing its logistics network.
Sainsbury’s and East Devon District Council brought forward plans to develop a site near Exeter airport and an outline planning consent was granted in September 2011.
Vince Prior, head of property investment for Sainsbury’s said: “Since receiving planning approval in September 2011 we have invested significant sums in preparatory works to deliver a fully serviced and remediated site.
“However, 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 at 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. We are therefore currently working with East Devon District Council to review our options.”
As well as the 29 acre main site, Sainsbury’s has a further seven acres of land which it now intends to sell.
Around 450 jobs were expected to be created once the depot was fully up and running.
At present Sainsbury’s has 80 stores in the South West, which employ over 15,000 people.
The facility was the first phase in the long-awaited Intermodal Freight Facility, known as Exeter Gateway, which forms part of the Exeter & East Devon Growth Point.
