Supermarket battle hits new front

Tesco has agreed a deal to buy the site in Peebles

Supermarket firm Tesco has agreed a deal to purchase a Somerfield store in the Scottish Borders.

The move will safeguard a total of 46 jobs at the Dovecot Road site in Peebles and could lead to additional employment opportunities.

The takeover puts the company in direct competition with Sainsbury's, which already operates in the town.

The two firms are currently locked in a battle elsewhere in the Borders over rights to build a new store in Kelso.

Tesco said moving into Peebles was evidence of a long-term commitment to the region.

The store conversion is expected to take about four months to complete.

At the same time Tesco and Sainsbury's have yet to resolve a struggle over who builds a new store in Kelso.

Scottish Borders Council selected Tesco as its preferred bidder for land at Pinnaclehill. where the shop would be built.

However, Sainsbury's has entered into agreements to buy land adjacent to the site which would be needed for the development.

It has led to a stalemate which SBC has given a deadline of six months to resolve or it could put Pinnaclehill back on the market.

A public meeting is due to take place in Kelso on Monday to discuss the situation in the town.

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