Tesco gets approval for hypermarket near M50

Tesco's four-year campaign to develop a district shopping centre at the end of the M50 at Clare Hall, Malahide Road, Dublin 13, got final approval yesterday from An Bord Pleanála.

The €70 million complex will be anchored by a 5,452 sq metre hypermarket, the first such venture in the State to be approved since the Government imposed a cap on the size of retail grocery outlets.

Since the restrictions were introduced at the end of 2000, store sizes in the greater Dublin area have been restricted to 3,500 sq metres; elsewhere, the maximum size permitted has been 3,000 sq metres.

Yesterday's decision by the planning appeals board to allow both a supermarket and a department-style store in a single building with more than 3,500 sq metres of floor space will inevitably encourage other developers to seek planning permission for similar hypermarkets in other areas.

The board's interpretation of the confusingly worded retail planning guidelines effectively endorses the views of Dublin city planners, who approved the Clare Hall development last summer.

The decision will be seen as an important test case for Tesco and Dunnes Stores at a time when German discount chains Aldi and Lidl, as well as the Musgrave group (with almost 600 Super Valu and Centra convenience stores), are stepping around the planning guidelines and expanding rapidly.

RGDATA, representing independent retailers, mounted strong opposition to Tesco's proposed district centre, which will serve not only the immediate Malahide and Coolock areas but also a large number of northside suburbs near the M50.

The complex will also include 19 shops with a total floor area of 2,512 sq metres and 825 car parking spaces.

There is permission for 150 housing units on part of the site, which, it is expected, will be sold on.

Mr Tony Keohane of Tesco Ireland said its policy was to build stores of varying sizes appropriate to the consumer and shopping needs of specific locations.

Construction on the site is due to begin this summer with completion in autumn 2003.

Tesco bought the 12-acre Malahide Road site in 1997 for almost €14 million.

It was sold by businessman Mr Albert Gubay, who retained an adjoining piece of land for a leisure and fitness centre.