Browse Sections

• Education
• Special reports

Sainsbury’s has a £1M hole in annual finances

by Lee Sykes
23/ 7/2008

THE empty site of the old Sainsbury’s store in Oldham centre is said to be costing the supermarket giant £1million a year in lost income.

Since its closure in 2004, attempts to find another retailer to take over the plot on Bloom Street have failed and the search has now been abandoned.

Sainsbury’s left the premises to move to a much larger store on Union Street. It was hoped another supermarket or similar retailer might take on the old site, but this has proved fruitless.

The site is owned by an off-shore company in the Channel islands and Sainsbury’s has a lease until 2024, which it is understandably keen to be rid of.

Part of the 55,000-sq-ft site is now used for car parking, but despite the efforts of both Sainsbury’s and Oldham Council a new tenant or buyer has not been found.

Daniel Berreovoets, from London-based Angermann Goddard and Lloyd (AGL), is the agent who is acting for Sainsbury’s.

He said: "All concerned parties are working together to look for someone to take on the site. That could be private, public or commercial.  It is costing Sainsburys up to a £1m a year in rent and obviously they want to relieve themselves of that. Oldham Council has a very pro-active regeneration department and they are keen to make progress and have been very helpful. Initially we were looking for another retailer, possibly a cash and carry, but now the plan is to demolish the building and look for a new development, either commercial or residential or institutional. We are hoping to make some progress before the end of the year."

Cllr Mohib Uddin, Cabinet Member for Regeneration, said: "The council has offered assistance to AGL, who are now marketing the former supermarket site.

"When the New West End development framework was produced in 2006 it was envisaged that Sainsbury’s lease to 2024 would make redevelopment a long-term rather than a short-term proposition.The site was therefore identified for redevelopment in the final phases of the masterplan.It is encouraging to see that both Sainsbury’s and the site owners appear willing to release the site for redevelopment. Possibilities discussed with AGL include redevelopment of the site – and potentially adjacent sites – for residential, commercial or leisure uses.The council is keen to assist prospective developers and will also direct interested developers to other opportunities across Oldham."

A Sainsbury’s spokesman said: ‘We are actively marketing the Bloom Street site. At present no plans for the site have been confirmed but we look forward to discussing viable options with interested parties in coming months."