Sainsbury's starts land offensive

Sainsbury's says it now owns land needed to develop a store

A busy public meeting in a Borders town has been told Sainsbury's has bought up land its rival Tesco would require in order to develop in the area.

The company claims the purchase now puts it in the "driving position" to deliver a store in Kelso.

However, Tesco has said the move will have no effect on talks with Scottish Borders Council about its development.

The authority previously named Tesco as its preferred bidder for council-owned land allocated for a supermarket.

That decision put Tesco in pole position to purchase the former Keltek factory site at the town's Pinnaclehill.

However, Sainsbury's told about 400 people at a public meeting in the town's Tait Hall it now owned nearby land which would also be required in order to build a supermarket.

We would like to reassure local people that Tesco remains fully committed to delivering a new and much needed store to Kelso Doug Wilson Tesco corporate affairs manager

Sainsbury's spokesman Mark Cummings said: "We were delighted to be able to announce last night that we have not only got options on the land surrounding the Keltek factory site but we have actually purchased it.

"So now Sainsbury's plc is a landowner in Kelso and has made the first investment of any supermarket operator in this town.

"I think that puts us in the driving position to move forward and deliver on our promise."

'Long-awaited supermarket'

However, Tesco's corporate affairs manager Doug Wilson said Sainsbury's actions had "no bearing" on its plans.

"We would like to reassure local people that Tesco remains fully committed to delivering a new and much needed store to Kelso," he said.

"We were selected by SBC as their preferred bidder for the site in December 2008 and we continue to work closely with the council to deliver the long-awaited supermarket."

SBC has already suggested it may have to put its land at Pinnaclehill back on the market if no agreement can be found to progress plans for a supermarket in the town.

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