16/02/2010

Planners Provoke Forecourt War

It's to be petrol nozzles at dawn as independent retailers battle Tesco in 'forecourt wars'.

The redevelopment of Northcott Shopping Centre in Newtownabbey - by Blanca Developments was given the go-ahead through the fast-stream Planning Service's Pre-Application Discussion system in December. Creating up to 200 new full and part-time jobs, there will also be around 250 positions for construction workers during the building project.

However, while the ageing Northcott Shopping Centre is to be demolished making way for the replacement Sandyknowes development, plans for a petrol filling station have proved a shock.

The forecourt was omitted from Tesco's pre-Christams Press announcement - but once the petrol pumps are operational, rivalry is likely to be a 'challenge' – and not just for competing supermarkets.

A 24-hour Maxol and Spar is 100 yards from the site of the £35m Tesco regeneration. Moyola Park - also Spar - is two minutes drive, and a third, a BP, is close too, in Glengormley 'village'.

Chair of Newtownabbey Borough Council's Planning Committee, Alderman Nigel Hamilton, (pictured above at the Glenwell forecourt) welcomed the rebuilding of the decrepit Northcott - but is also aware of the likely impact.

He warned that the 'new' Tesco jobs are welcome, but a further filling station will bring additional pressure to the vulnerable forecourts, which he said, "are dropping like flies in the current economic climate".

A spokesman for the Planning Service revealed: "The redevelopment of Northcott proposed a petrol filling station of 70m x 40m," which he said is well below the criteria for an assessment of the potential retail impact.

"Policy focuses upon the retail floorspace, rather than their sales of fuel," he said, which means - no matter how many tens of thousands of gallons are pumped by Tesco - there is no need to consider long-established businesses.

"Tesco is expanding aggressively," said Paddy Doody, Sales and Marketing Director at Henderson Wholesale, the Spar and Vivo wholesaler, but Tesco's second Newtownabbey forecourt was no surprise.

He said that competition is "healthy" and that the fight has been joined with major work at the 'company-owned' Spar forecourt at Glenwell Road.

Providing another boost for the local construction industry, he revealed: "We will knock-down and rebuild in an investment of almost £2m, for re-opening this September," he said.

At Glengomley's Glenabbey Service Station, licensee Robert McNeice said: "Tesco plans to develop a new store including a petrol station in close proximity is worrying and is most likely to impact on fuel trade."

Brian Donaldson, General Manager, Marketing and Retail of the Maxol Group, said: "We welcome competition but only on the basis of a 'level playing field'.

"Supermarkets with forecourts generate 30% to 35% more on in-store grocery sales often using fuel to entice customers into their stores. This is clearly a big attraction to customers but isn't 'fair competition'," he said.

Corporate Affairs Manager for Tesco said: "Part of this development will include a petrol filling station which customers have told us they would like," he said.

Traders' responses are bullish, but a nearby former forecourt - the old Skyline – is now derelict and bears testimony to the fate of other such facilities when the going gets tough.

See: Tesco's Northcott Plan Approved

(BMcC/GK)

Related Northern Ireland News Stories
Click here for the latest headlines.

25 November 2010
Dublin Shooting Victims Were 'Set Up'
Gardaí in North Dublin have said they have reason to believe that the two men shot in a Finglas petrol station were 'set up' to be murdered. The victims, Mark Noonan, 23, from O'Devaney Gardens and Glenn Murphy, 20, from the Drumlea Estate were shot dead on the forecourt of the Tesco Petrol Station at Clearwater in Finglas on Tuesday night.
05 April 2011
Tesco's Sandyknowes Centre Underway
The long awaited construction of a new Tesco superstore in Glengormley's neglected Northcott Shopping Centre has begun. Although Tesco has yet to provide details, workmen are now on site beside the dilapidated supermarket shopping centre - with the wrecker's ball to level the premises after Easter.
25 November 2015
700 Tesco Drivers To Vote On Strike Action
Over 700 Tesco drivers at distribution hubs in Belfast and Doncaster are to ballot for strike action next week over a pay dispute. The firm announced a pay offer of 0 per cent for 2015 and 1.5 per cent for 2016. The strike vote follows a 91 per cent rejection of the pay offer across the three sites.
12 January 2011
Ards In Line For Further Retailing Boost
Ards town is to get a new retailing boost with the construction industry enjoying a fillip along the way. A proposal for a multi-million pound mixed-use retail scheme in Newtownards, Co Down was submitted to the Planning Service in late December 2010. If approved, the planned development will encompass some 6.
07 October 2010
Tesco Superstore To Get Underway
Hundreds of construction jobs are expected to be created following full planning approval for a new Tesco superstore. The store will be situated in Newtownards, north Down, on the site of the old Ards Abattoir off the Portaferry Road. The project, which includes a petrol station and parking spaces, will result in the creation of 200 retail jobs.