Tesco loses to Sainsbury's in planning row

The Supreme Court decided that Wolverhampton City Council was wrong to use compulsory purchase orders to buy Sainsbury’s land for a Tesco store.

Wolverhampton served the compulsory purchase order on Sainsbury’s, which owned 86% of the site, so Tesco, which owned most of the rest, could build a supermarket. Tesco promised to redevelop another area of the city.

Both companies wanted to develop a site in Raglan Street, but Tesco also controlled land 850 yards away known as the Royal Hospital site which the council wanted regenerated.

The Court of Appeal and High Court had ruled that the council was entitled to take the Royal Hospital site benefits into account when deciding between who should develop the Raglan Street site.

But the Supreme Court yesterday ruled the two unconnected developments should have been dealt with separately.

John Rogers, property director at Sainsbury’s said: “As majority landowner, owning 86% of the site, it is only right that we should be given the chance to regenerate the Raglan Street area.”