Aldi has confirmed it has found a new user for its town centre supermarket if it is allowed to move from Sheerness to Queenborough – with Home Bargains set to fill the unit it vacates.

The German discount chain has been trying to build flagship premises next to Neats Court retail park, and opposite its huge regional distribution depot, for five years.

But it was delayed following a legal objection by Tesco, which has its own store in Sheerness.

Cllr Cameron Beart (Con), who represents Halfway and Queenborough on Swale council, said: "Aldi tell me they remain fully committed to their investment in Sheppey and want to move forward with the project."

Everything now hinges on the result of its resubmitted application.

Cllr Beart added: "As it stands, the application is still pending a decision with new documents being uploaded onto the planning portal regularly.

"They continue to liaise with officers and have now provided responses to many of the outstanding matters and various retail-related matters which have arisen during discussions."

He added: "For those worried about the existing store in Sheerness closing, Aldi have secured a deal to lease it to national retailer Home Bargains once they vacate."

"This is good news and lifts a lot of uncertainty about the future of the site and shows there are still national retailers looking to invest on the island and create more employment opportunities."

The site had previously been linked to Farmfoods.

Aldi first began talks with Swale council about a new store in 2017 and submitted plans in June 2019 because it said its 15-year-old branch in Sheerness was "no longer fit for purpose".

It was given the go-ahead in November 2020 and construction was about to start when rivals Tesco had the permission quashed in the High Court in the October.

By then, Aldi had already put its Sheerness store in Millennium Way on the market for £2 million.

The original planning permission, which had also been opposed by Morrisons, was challenged on three counts.

Tesco claimed there was not enough consideration given to the impact of the proposals on Sheerness town centre as a whole, that the decision to grant permission was “procedurally incorrect” as there had been no screening to determine if an environmental impact assessment (EIA) was needed and that there were inconsistencies in the planning committee’s decision-making.

Aldi maintained an EIA was not needed as the site is allocated for large-scale employment use in the borough’s Local Plan.

A spokesman for the supermarket later revealed a new retail impact assessment has been undertaken which found relocating the store would have “no impact on Sheerness town centre or other centres that would warrant refusal”.

However, not everyone is pleased the supermarket is leaving the town.

Phil Crowder, who chairs the Sheerness Town Team, said on Facebook: "I am sure that a large number of people would prefer the Sheerness store to remain an Aldi rather than it becoming a Home Bargains. People need cheaper food not home furnishings.

"The store is a lifeline to a great many local people who have supported Aldi since it opened and made the store the success it has become.

"Now Aldi are going to abandon them in pursuit of greater profit. Many of its current users will not be able to travel to this new superstore because they either don’t drive, cannot afford to drive or just because of the lack of decent affordable public transport."

Cllr Beart replied that the Sheerness store is one of Aldi's smallest in the UK and is no longer commercially viable.

He said: "They cannot even stock their full product range in Sheerness because of how restrictive it is. The options are move to a new store, which will be a huge flagship store and cater to most of the same catchment area, or close and leave the Island entirely.

"In all my meetings with Aldi and their representatives over the years, I don't think this decision is driven by profits but practicality. They've expanded the Sheerness store twice to its absolute limits. And a large percentage of their customers currently drive to the store from elsewhere on the Island. Those customers will naturally transfer to the new store as it is more accessible."

He said suggestions to retain both stores would double staffing overheads.

Others praised Home Bargains, which also has a store in Sittingbourne. One wrote: "Home Bargains cover everything and also have a good food choice as well."

In an update to the council lodged last month, Aldi's consultants Planning Potential said: "It remains somewhat frustrating to note continued questioning of the motives and intentions behind Aldi’s decision to improve the shopping experience for their customers on Sheppey.

"This is a point we have consistently been transparent with the council since discussions began in 2017. The existing Sheerness offer simply no longer meets the company’s requirements and is in need of modernisation."

Access to the new supermarket, the plans for which can be found by clicking here and using the code 19/502969/FULL, would be via a new arm on the existing Neats Court roundabout.

Councillors originally expressed fears about how pedestrians and cyclists could reach the new store but Aldi says it will provide a new footpath and cycle link along Queenborough Road.