Retailer Marks and Spencer has scrapped its plan to come to Caerphilly town citing recent difficult trading conditions.
The chain had been in negotiations with the developers of Gallagher Retail Park, near Crossways, about opening a food store in the unit occupied by discount store What.
Planning permission was granted in November last year to divide the unit into two separate spaces for food and non-food items.
The reasons behind the reversal were outlined in an email between Marks and Spencer and councillors.
It reads: “You may be aware that M&S announced a slowdown in our food store opening programme in November 2017.
“This was in response to difficult trading conditions and the growth of convenience shopping, with more customers choosing to shop online and for home delivery.
“At the time, we said that because of these challenges, only the highest returning sites and developments would qualify for addition to the M&S Food store portfolio in the future.
“Regrettably, a review undertaken at the start of the year has concluded that the proposed store at the Gallagher Retail Park in Caerphilly does not meet all our more demanding criteria for new Food store developments and consequently we have informed the landlord that we no longer wish to proceed with the scheme.”
In a statement, Morgan Jones ward councillors Jamie Pritchard and Shayne Cook expressed their disappointment at the move which they described as a “blow”.
They said: “Caerphilly has come tantalisingly close to securing one of the most well-established household brands.
“But a much publicised fall in sales and difficult trading conditions has led Marks and Spencer to make the decision to dramatically reduce their offering across the UK.
“We must however take confidence that a major brand were intent to come to Caerphilly prior to their well documented dip in sales.
“We will work closely with the council’s Cabinet Member with responsibility for regeneration Eluned Stenner and local residents to keep up the fight for alternative household brands locating to Caerphilly.”
Cllr Stenner said: “As Cabinet member for regeneration I am bitterly disappointed by the news that M&S have decided not to locate at Gallagher Retail Park Caerphilly.
“However we are currently working on a new regeneration plan for Caerphilly and will continue to work closely with key partners to improve the retail offer and attract more household brands to Caerphilly.”
A spokeswoman for M&S said: “We’re committed to transforming M&S for our customers and making sure we have the right offer in the right locations. Last year we announced the reassessment and reduction of our Simply Food opening programme, as part of this we are no longer considering a store in Caerphilly. We remain committed to serving customers in South Wales through our numerous other stores and M&S.com”.