Supplementary evidence from Tesco (PPS 6 03)

 

 

 

Thank you very much for inviting Tesco to appear before the Select Committee on Communities and Local Government on 11 May 2009 as part of the Committee's inquiry into 'Proposed changes to the Planning Policy Statement 6 (Town centres). Following the hearing the Committee requested some additional information on a number of specific questions, as follows:

· What percentage of Tesco's larger stores are built in town centres?

· What percentage of Tesco's stores are conversions of existing buildings?

· Are there further examples of edge of centre stores which have had a positive effect on the town?

 

I have set out our response to each of these questions below, which I hope will prove helpful to the Committee. In addition, in a later evidence session with a representative from Tescopoly, Tesco's proposed store development in Yiewsley was mentioned, and I have taken this opportunity to clarify a number of points that were made.

 

 

THE PERCENTAGE OF LARGER STORES BUILT IN TOWN CENTRES

 

During the session the Committee was keen to understand the level of commitment to town centres and the influence of the policy framework over this. As we stated at the hearing, Tesco is firmly committed to the town centre first policy. We have always invested in town centres and have been very flexible and proactive in our approach by developing smaller formats for central and edge of centre sites. We understand the objectives of this policy and support vibrant town centres. We seek to meet the needs of shoppers and to contribute to the vitality of the town centre as a whole.

 

The Committee requested information on Tesco's percentage of larger stores built in town centres. This information is commercially sensitive, so we have supplied it to the Committee separately and in confidence.

 

THE PERCENTAGE OF STORES THAT ARE CONVERSIONS OF EXISTING BUILDINGS

 

The Committee was also keen to understand what percentage of Tesco's stores were conversions of existing buildings. This information is commercially sensitive, so we have supplied it to the Committee separately and in confidence

 

EXAMPLES OF EDGE OF CENTRE STORES HAVING A POSITIVE EFFECT

 

The Committee also asked the panel for examples of edge of centre developments that have had a positive effect on the town centre.

 

As we mentioned during the session, our store development in Beverley was referenced in the Planning for Town Centres Best Practice Guide as an example of a store promoting choice and competition and therefore making a positive contribution to the health of the town centre. For ease of reference, the relevant page from the Best Practice Guide is attached to this letter.

 

A second example is our Sunbury Cross store in Surrey. Opened in 1991, the Tesco store in Sunbury is located approximately 340 metres from the defined centre of the town, via a footbridge link, although the closest part of the Tesco car park is 170 metres from the centre. Instructed by Tesco, Nathaniel Lichfield and Partners (NLP) undertook an assessment of the effect the store opening and subsequent extensions in 2003 and 2005 have had on the town. The report specifically considered changes in convenience retailing, comparison, services and other uses, and vacancy levels.

 

The overall conclusion of the report was that the enlarged Tesco store and improved links to the town centre have enhanced opportunities for linked trips "to the benefit of town centre retailers". The analysis shows that after the redevelopment of Tesco and the subsequent redevelopment of the town centre, the convenience and comparison provision in Sunbury town centre has improved. In relation to the convenience store national average (determined by the number of units) the level of convenience provision (10.6%) prior to the Tesco development was just below the national average (10.9%). By 2006 it was 11.8%, above the national average (9.1%). This has included the opening of Marks and Spencer, Co-op and Farm Foods, as well as a number of smaller convenience shops, such as Sunbury Food and Wine and Premier Smart Express. The result is improved choice and range for local residents. As regards vacancies in the town centre, the levels have fallen over the longer term to a level below that prior to the Tesco store development.

 

 

I hope this information proves useful. We are of course happy to expand on any of these points in further detail. As mentioned above, I also wanted to take this opportunity to clarify a number of points in relation to Tesco's proposed store development in Yiewsley. This development was flagged to the Committee by a representative of Tescopoly, who suggested that the store was situated 650 metres from the town centre and implied that this was a relevant factor in a prior refusal of the application by the Council. In fact the store is an edge of centre location, located within 300 metres of the primary shopping area of Yiewsley - a point agreed to by the Local Authority, their Independent Retail Consultant and an Inspector appointed by the Secretary of State. A previous application was refused at appeal but only on the basis of the proposed store design. Tesco subsequently revised the proposed design of the store to take into account the Council's concerns and the application has now been approved.

 

May 2009