Aldi 'disappointed' as plans for two new stores in Perth and Kinross blocked by Tesco

German supermarket chain Aldi has been left “disappointed” after plans for two new stores in Perth and Kinross were blocked within the space of a month.

Both Perth and Kinross Council and Aldi are considering options following Tesco’s successful legal challenge to overturn the planning permission granted for a new £3.7m replacement store in Perth.

The legal overturn came just a couple of weeks after Aldi was refused planning permission – this time by Perth and Kinross Council – for a £5.3m store in Milnathort which had nearly 1000 letters of support.

In June 2022 Perth and Kinross Council’s planning and placemaking committee unanimously granted planning permission for Aldi to replace its Glasgow Road store in Perth with a brand new bigger store on Necessity Brae.

Aldi’s property director for Scotland Philip Johnston told the committee in June 2022 its current Glasgow Road store was “problematic” and “far smaller than our standard store”.

There were 16 letters of support for the Necessity Brae application and 11 objections – including one from supermarket rival Tesco.

Objector Tesco said it had “significantly invested” in Perth with stores on Edinburgh Road and Crieff Road as well as a city centre Express store and in its letter of objection called for a “health check of town centres within the catchment of the proposal”.

Work had already begun on the new Aldi but came to a halt after Tesco raised an action at the Court of Session which was upheld by a judge just over a week ago.

Following the decision, a Perth and Kinross Council spokesperson this week said: “We are considering the options available and the most appropriate way forward regarding the application.”

An Aldi spokesperson said: “We are disappointed regarding the recent decision to overturn Perth and Kinross Council’s approval for our proposed new store at Necessity Brae, Perth.

“In addition to the significant investment of £3.72m, the proposals for a new, larger store would meet the need for better shopping facilities within this part of the city, whilst importantly helping retain existing jobs from our Glasgow Road store as well as creating additional employment opportunities during the construction period and via the supply chain.

“We would like to thank all those who have supported us throughout this process, including local residents and those at Perth and Kinross Council. In light of the decision, we look forward to our planning application being re-determined by the council.”

Just a fortnight prior to the Court of Session decision, on April 18 Perth and Kinross Council refused plans – under delegated powers – for a brand new store in Milnathort because the area has been set aside for employment use and deemed it as an “out of centre” retail development.

The proposed location was at Kingfisher House Auld Mart Business Park on Milnathort’s Orwell Road, on the southern edge of Milnathort and just north of Kinross. Aldi said the store would potentially create 35 jobs.

Perth and Kinross Council has defended its reasons for refusal.

A PKC spokesperson said: “Our Local Development Plan (LDP) identifies the site is neither within the defined town centre or adjacent to it. While we accept that a retail unit will provide some employment opportunities; it was not considered sufficient to outweigh the loss of a relatively large allocated employment site, and the wider contradiction to current retailing policy which has the potential to have an adverse impact on existing retailing centres.”

Perth and Kinross Council received 105 objections to the Milnathort Aldi application and 259 letters of support.

Aldi said it received nearly 1000 letters of support for its plans to open a store in Milnathort and there was “limited consumer choice within the area”.

A spokesperson from Aldi said: “We are disappointed by Perth and Kinross Council’s refusal of our application for a new Aldi store in Milnathort despite the high levels of public support, and we will be reviewing our options following their decision.

“The proposed development represented a £5.3m investment in the area, and the potential for 35 new jobs for local people within the store.

“With limited consumer choice within the area, a new Aldi in Milnathort and Kinross could provide a discount food option, and allow members of the local community to shop more sustainably by travelling less.

“Following well attended public consultation events and nearly 1,000 letters of support from residents, it became clear that there was a high level of demand within the local area.

“We would like to thank everyone who engaged with and supported the proposals while we consider our options moving forward.”