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Tesco wanted to build a superstore on the site of the Project Jennifer development in north Liverpool, but has now had its appeal dismissed.
The company was hit by a similar rejection in Co Down, Northern Ireland, when a planning appeal against official refusal of a bid to construct Ireland's largest Tesco near Banbridge was also thrown out.
But, at the same time, Tesco has been given the green light for a new superstore in Newtownards Co Down, as part of the Castlebawn development, so it's not all 'bad news' for the supermarket giant.
However, in the case of the Liverpool development, the failed plan may be a major set-back.
It was for a 8,457 square metre foodstore, with associated petrol station, car parking and landscaping, an indoor market and outdoor market area in Great Homer Street.
However, following a public inquiry earlier this year their application has been rejected by Planning Inspector Phillip Ware.
Liverpool City Council and development partner St Modwen argued that the development would prejudice a comprehensive redevelopment which will deliver a district centre which provides greater comparison shopping and greater choice to local people than a free standing foodstore.
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Councillor Peter Millea, Liverpool City Council's Executive Member for Assets and Development, said: "We have always believed that what is needed here is a scheme to regenerate the district rather than just a stand-alone store.
"This decision will enable us to go ahead with a comprehensive regeneration scheme- something which the planning inspector has clearly recognised is what is required in north Liverpool.
"Project Jennifer is a scheme which is overwhelmingly supported by the local community and they will be pleased that we can now make progress.
"While there is still a long way to go before work can start on site the City Council is committed to seeing this project through because of its importance to the regeneration of this area."
Michelle Taylor, Regional Director of St. Modwen, said: "We are delighted by the planning inspector's decision to refuse the free-standing foodstore proposal for Great Homer Street.
"We have always maintained that the application to build a foodstore in isolation would not have brought about the much needed regeneration for one of the most deprived areas in the country and this is something which the planning inspector endorsed.
"We are looking forward to pressing ahead with our proposals to deliver this much needed scheme which is widely backed in the local community - this is not only great news for us, but also for them.
"The decision by the planning inspector now means we can begin the next phase of Project Jennifer. This is a long term, large scale regeneration project which will provide hundreds of new homes, hundreds of full time jobs, new community facilities and a large supermarket. We can now get to work delivering the scheme that the people in the area want."
It is expected that land assembly will begin in spring 2010.
For further information visit: Banbridge Tesco Plans Rejected
(CD/BMcc)
