The Co-op and the landowner behind plans to bring Morrisons to Stonehaven are battling to prevent a rival Tesco from opening.
The proposed supermarket is planned as part of a new petrol station and electric vehicle charging development just off the AWPR on the outskirts of the Mearns town.
Glasgow-based Ashfield Commercial Developments is behind the vision for the site, which is currently home to only a few old farming buildings.
Locals have often bemoaned a lack of shopping options in Stonehaven, with complaints of a “Co-op monopoly” limiting grocery options.
The plans for a new Tesco and a new Morrisons at roughly the same time were therefore welcomed by many.
But Co-op higher-ups are now urging Aberdeenshire Council to reject Tesco’s bid to open, citing fears for the town centre.
Meanwhile Ury Estates claim they have “already spent huge sums” preparing their land off the Slug Road for a new Morrisons supermarket.
And the landowner warns that Morrisons could back out due to the unexpected competition…
Our look into the wrangle reveals:
- How much the Co-op thinks its David Street store would lose out by should Tesco open a mile away
- How Tesco and Morrisons competed to open at Ury years ago
- Fresh doubts that the new Morrisons will ever be built
- And what independent retail experts have advised the council to do
Why is the Co-op trying to block new Stonehaven Tesco?
There are three branches of The Co-op in Stonehaven: At Market Square, David Street and Redcloak Drive.
Representatives for the company explain that the chain is a “key stakeholder in Stonehaven town centre” due to the prominent Market Square outlet.
And the David Street branch, it is claimed, “acts as a retail anchor for the town centre” by bringing people in to then venture into other stores.
The letter continues: “Given our client’s interests in Stonehaven town centre, they have significant concerns with the proposed development.”
They say the new Tesco on the outskirts would cause “significant harm” to the traditional retail district.
Crucially, they say the rival operator has “underestimated” this in documents sent to Aberdeenshire Council seeking planning permission.
Co-op reps say Tesco has included places like Portlethen (which has its own Asda) and Newtonhill (which has a Tesco) to inflate the supposed “catchment area” for the new shop.
Would new Stonehaven Tesco HALVE trade at David Street Co-op?
The “large format” Tesco would have almost 200 parking spaces outside, and is described as a “superstore”.
And the Co-op’s objection argues that bosses at the UK’s largest supermarket chain have failed to take into account the combined impact it would have alongside the already-approved Morrisons, which was passed by the council in 2021.
They say this “underestimates the potential impacts”.
The letter adds: “A store of the scale proposed would have a significant impact on our client’s store at David Street with consequential impacts on Stonehaven town centre.
“It is entirely logical to assume that the proposed supermarket would draw a sizeable proportion of its turnover from the existing Co-op… The impacts on existing retailers in Stonehaven would be particularly severe.”
And Co-op experts reckon the new Tesco would “have an impact of around 50% on the store at David Street”.
And why is Ury Estates against the Tesco?
And speaking of those Morrisons plans, the landowner behind proposals to bring the shopping giant to the town have also hit out in a bid to banjax Tesco.
In their letter to the council, Ury Estates delves into some detail on how the Morrisons scheme came about.
In particular, they claim that Morrisons became the preferred operator there at the expense of Tesco…
Ury Estates says: “Tesco Stores put forward an offer to operate the superstore at Ury Estate and they were unsuccessful.
“Morrisons have since advanced a detailed specification and agreed terms.”
The Morrisons is said to be a vital part of the entire Ury development – which will also feature:
- 100 affordable homes
- Rugby pitches
- A Jack Nicklaus designed golf course
- Ury House becoming a plush hotel
- And a new link road between Netherley Road and the Slug Road
But as the supermarket is an “integral part” in this, Ury Estates warns that everything else could collapse if Morrisons pulls out.
They stress: “None of the above happens without the security of the planning permission for the foodstore.”
AWPR retail development would ‘offer no benefits to the town’
The Ury Estates objection continues: “The applicant is a property/land speculator and their interest is purely in the financial gains from a retail development on their site.
“Whereas Ury Estates’ links to and investment in Stonehaven cannot be questioned.
“The application needs to be assessed for what it is…
“A large out-of-town foodstore development, positioned to intercept car-borne shoppers and offering no associated benefits to the town.”
So why DIDN’T Tesco take Morrisons into account?
Put simply, Tesco reckons it might never be built.
And, what’s more, they insist they chose not to build on the Ury land – rather than being beaten to the spot by their rival…
Documents sent to Aberdeenshire Council by Pritchett Planning Consultancy, on behalf of the developer, say their doubts stem from a disputed link road.
The supermarket would need this route to be created on the land, and Tesco say there “appears little sign it will be completed soon”.
Pritchett adds: “Without the link road, the store at the estate cannot open.
“The Ury Estate site has been considered by Tesco and rejected due to serious deliverability issues.
“It is also poorly located.
“As Stonehaven residents have been waiting for many years for supermarket provision, the Ury Estate supermarket cannot be relied upon to deliver a store that residents need.
“Only the [Tesco] application site can deliver a store of the nature needed to reduce unnecessary travel and to retain spending locally.”
What does Ury Estates say about this?
The landowners acknowledge the “slow process” in bringing the Morrisons to the town, given it was approved three years ago.
They add: “Progress has been significant if slower than hoped, influenced by global issues such as the Covid pandemic and the wider slow-down of the financial markets.”
But they remain committed to the plan.
They say all ownership deals are now in place to commence the link road, and it should be built within 18 months.
This places an approximate opening date on the new Morrisons of early 2026.
And what do the experts say on Stonehaven Tesco wrangle?
Gravis Planning, an Edinburgh-based consultancy, has been appointed to carry out an independent study on just how the Tesco could affect Stonehaven.
And their verdict?
They sent the council a 21-page report ultimately reaching the conclusion that Tesco was indeed wrong to omit the Morrisons from their projections.
What do you think of the wrangle over the new Tesco? Let us know in our comments section below
The dossier states: “There is a significant retail deficiency within Stonehaven, associated with lack of modern supermarkets.
“The proposed development would assist in addressing this deficiency.”
Tesco ‘did not justify claims’
However, they agree that an assessment commissioned by the developers has underestimated the effect it will have on the town centre and nearby Co-op.
Gravis says the study did not justify claims made that only a “very low” amount of trade would be taken away from the heart of the town.
They say that studies should now be undertaken to show how the centre would be hit if both Tesco and Morrisons are to open in Stonehaven – and only then should the council decide on the Tesco proposal.
You can see the Stonehaven Tesco plans, and read the Co-op objection, here.
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