“We are continuously reviewing our logistics network to ensure that we provide the most efficient platform to service our stores and our customers,” said Sainsbury head of property investment, Vince Prior in a statement released by the supermarket chain.
“As a result of efficiency improvements elsewhere in our network, we have concluded that there is no longer a requirement for a logistics depot at this location.
“We are working closely with East Devon District Council and East Devon Growth Point and it is our intention to begin active marketing of the site immediately.”
Sainsbury had invested “significant sums in preparatory work for the site”, said Prior. He reassured Devon residents that Sainsbury would continue to invest in the south west through its portfolio of 80 stores in the region, where it employed 15,500 people, he said.
Sainsbury’s plans, which in addition to the depot included the separate purchase of a seven acre site for alternative business uses, were originally approved in 2011.
Concerns
Concerns regarding the future of the site were raised last year, when the grocery retailer announced it was putting further development on hold.
It is unclear how many jobs the depot would have created, had it gone ahead. However, it was the first phase in the creation of Exeter Gateway, an intermodal freight facility that was set to generate up to 450 jobs in the region.
A spokesman for East Devon District Council told FoodManufacture.co.uk: “Sainsbury indicated it was going to have to review it last year. Now it’s going to market the site and we are going to help them.”
He said he was unaware of any initial expressions of interest, but local press speculation has suggested that the site would suit a number of firms, including online retailer Amazon. Plans for job creation would kick off again once a buyer is confirmed.
'Extremely sorry'
Council leader, councillor Paul Diviani, said: “I am extremely sorry to hear this news – which is disappointing both for East Devon and the wider region.
“However, I’m pleased to note that marketing of the site will begin immediately and we will happily work with Sainsbury’s and their development arm to make the most of the enormous commercial and employment opportunity that this important logistics site represents.
“The considerable work that Sainsbury’s have undertaken in preparing what is now a serviced site means that the lead-in period for securing new development has been substantially reduced. With significant investment in new infrastructure, such as the Clyst Honiton By-pass, and the first jobs coming forward at both Skypark and the Science Park nearby, there is real momentum in the area.
“There’s also tangible evidence that our vision of delivering employment alongside new homes is now starting to be delivered. We look forward to seeing this site attract new investment and many new jobs to the district.”