New store plans facing Tesco challenge, says Lidl boss

Supermarket giant Lidl says it has been informed rival chain Tesco intends to launch a legal challenge against its plan to build a new store in Londonderry.

Plans to build the store at Crescent Link in Derry's Waterside were first submitted in 2021 and given the green light earlier this year by Infrastructure Minister Liz Kimmins.

But Lidl said it has now learned that Tesco has written to the Department for Infrastructure (DfI) requesting permission to challenge the store's ministerial approval.

That challenge, Lidl said, could jeopardise millions of pounds of investment in the north west region as well as the creation of hundreds of new jobs.

"From our side it's extremely disappointing and frustrating that there's another potential roadblock for our Crescent Link store," Lidl's regional managing director Gordon Cruikshanks said.

Speaking to BBC Radio Foyle's Mark Patterson Show, Cruikshanks said Lidl had been made aware of "a pre-action protocol in advance of a judicial review" in relation to Crescent Link.

He said that meant "Tesco have written to the Department of Infrastructure requesting that planning permission recently granted to ourselves is quashed".

"We are extremely concerned to learn of Tesco's plans to attempt to hinder our expansion in Derry-Londonderry through a judicial review process," he said.

Tesco has declined to comment but BBC News NI understands it is likely any objection would focus on planning, rather than commercial considerations.

Tesco's store at Lisnagelvin is about 0.8 mile (1.29km) from the proposed site of the planned Lidl store at Crescent Link.

DfI said it is "in receipt of pre-action correspondence challenging the decision," adding it "is not appropriate to say anything further at this time."

Cruikshanks said any attempt to stop the Crescent Link store would block "£10m of investment in the north west, at least 30 new permanent jobs (in store), 200 jobs throughout construction and limit the choice and quality for customers" in the region.

He added: "We will do everything possible in spite of this uncalled challenge by Tesco. Our long-term commitment to the north west is absolutely stronger than ever."

When approving the Lidl Crescent Link store in June, Kimmins said she had taken time to reach a "carefully balanced decision" and said the application had received cross-party support at council level.

She said the land earmarked for the supermarket was zoned for housing, but said significant weight had been given during her decision making to the economic and social benefits of the development.

The potential legal challenge from Tesco is the latest twist in a planning saga that has lasted more than five years.

The retail chain submitted plans for the store at Crescent Link in 2021 and the application was approved by Derry City and Strabane District Council.

But it was "called in" by the DfI, which has the legal power to review an application when it is considered to be of regional significance.

Earlier this year, the department apologised for delays in reaching a conclusion on the application after concerns were raised about the length of time the process was taking.

The delay had drawn criticism from several local councillors and came as Lidl announced plans to invest £31m in the north west over five years, including proposals for three new stores and more than 100 retail jobs.