Supermarket giants Asda and Tesco are embroiled in a dispute in Coalville, Leicestershire, where both retailers have submitted plans to develop stores.

Asda has been working with the North West Leicestershire District Council since 2007 on proposals to build on the derelict Mitchell Grieve site on Market Street, where it wants to develop a 47,000 sq ft store.

But a decision on the application has been delayed after a joint application was submitted five weeks ago by Parkridge and Tesco to develop a supermarket on a nearby site.

An Asda spokesman said: “Despite all the hard work we put in with the district and county council, the committee has left the future of this important regeneration project hanging in the air. Our plans would create 400 jobs, kick-start the regeneration of the town and obviously bring benefits to shoppers.”

Parkridge had already earmarked the site for a food store but had not signed up a retailer, meaning Asda’s bid was likely to go through unopposed. But now Tesco and Parkridge’s application has thrown Asda’s prospects for the town into doubt, as Coalville is unlikely to be able to support two supermarkets.

A Tesco spokesman said: “We’ve been looking at Coalville for a long time, it was just about finding the right site. Asda probably felt they were going to have a clear run and they didn’t think Parkridge would come up with a named operator.”

The battle mirrors that of Tesco and Sainsbury’s long-running dispute over a shop in Kelso on the Scottish Borders.

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