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23 Dec 2025

Tesco shelves plans for new Derry store

tescosite
Tesco has scrapped plans for a new store on the Buncrana Road in Derry. The supermarket giant had hoped to construct a massive new outlet adjacent to land (pictured) it had purchased at Templemore close to the units currently occupied by B&Q and Dunelm Mil. Tesco lodged a planning application for the new store in 2009. It had been envisaged at the time that if approved, the new store would create 200 new jobs. However, the Environment Minister at the time, Alex Attwood, refused planning permission for the proposal in December 2012, a decision which Tesco then appealed. Despite the ruling being upheld by the Planning Appeals Commission (PAC), Tesco told the Derry News in November of last year that they were still considering their options for the site, adding that they were ‘ruling nothing out’. However, Tesco has confirmed they are no longer proceeding with their plans for a new store at the location, which lies at the junction of Buncrana Road and Templemore Road. The retail giant has now put the land up for sale. A spokesperson for Tesco said the decision to no longer proceed with the store had been “difficult” and had followed a “broader review of its stores.” “Following a broader review of our planned new stores, we have taken the difficult decision to no longer pursue our Buncrana Road development,” the spokesperson said. “The site will be sold. To help us find buyers we have appointed property agents in both London and here in Northern Ireland.” The spokesperson added: “Serving our customers is our number one priority in the city and we'd like to thank the community for its support over the years.” It comes after Tesco announced in January of this year that it would be closing 43 unprofitable stores as part of its new chief executive’s efforts to revive the retail giant’s fortunes. Tesco had also announced it was to abandon 49 sites where it had planned to construct new stores but had not built them. Tesco also confirmed in January of this year that it would not be going ahead with plans for a £40m store to replace its current outlet at Lisnagelvin Shopping Centre. Planning permission was approved for the new build in March 2012, and would have created 200 new full and part-time jobs and 300 construction jobs. With the Lisnagelvin site, Tesco had hoped to double its store in size, and would have also accommodated a total of 13 other small units in the new development.

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