Morrisons voice fears over proposed supermarket development in Oswestry

It has sent a letter to Shropshire Council speaking of its concerns – and sparking fears that it is about to pull out of plans to build in Oswestry.

Planning permission was granted more than two years ago for the redevelopment of the town's Smithfield market and the creation of a major new retail and leisure park, with a cinema, on half of the land.

With the new Smithfield now operating, contractors acting for Morrisons have cleared the old buildings on the Shrewsbury Road. But the company will give no indication of any timescale for the new buildings going up.

Last month Aldi was granted planning permission for a store just a few hundred yards away, next to the Highwayman Pub and Fairholme residential home.

A second discount store, Lidl, also wants to build a store and non food retail units a short distance away on the JT Hughes car sales site also on Shrewsbury Road.

In a letter to Shropshire Council, agents acting for Morrisons have sent out a warning that the Smithfield development and Aldi will have a serious affect on town centre trade.

Development consultant Peacock and Smith says in the letter: "The cumulative impact of the approved new Morrisons, the approved new Aldi and the proposed Lidl would be significantly adverse, reducing the town centre's convenience goods turnover by an estimated 48.2 per cent.

"This would leave the town centre's convenience retailers collectively trading at around only 65 per cent of their expected turnover. This is a worryingly high level of impact which would have a serious knock-on effect for the vitality and viability of the town centre."

A Morrisons spokesman said: "Morrisons is still working on the details of the proposed new store and is therefore unable to provide information on timescales at this time."