As Tesco takes steps to shore up its balance sheet, it will no longer be going ahead with the proposed joint Tesco/Dobbies store at East Kilbride. This is just one of the projects to be pulled by the supermarket, and there are now no new garden centres in development.
Tesco had only won approval to build a supermarket and garden centre at Peel Park in June, even though the company had been campaigning for permission since 2009. Locals to the area were surprised and angry at the news that the development will no longer go ahead, as Tesco had indicated that 400 jobs would be created if planning permission was granted. In fact, an Asda development that might otherwise have been given the go-ahead was turned down in light of the promise of new Tesco/Dobbies jobs.
The first joint development with a Tesco store was the Dobbies that opened at Kings Lynn in October 2013. The companies shared the same entrance to the store. At Bar Hill, Cambridge, this October, the first Dobbies was opened actually within a Tesco. While a spokesperson said this was going well, he added that it was a little early to know if the formula would be repeated at other stores.
Now with Tesco reported to be selling non-core assets, those within the trade are now speculating that Dobbies will fall into this category.