Supermarket planning

Why is the planning process in the news?

A family of dormice might seem like a trivial retail problem, but when it comes to planning, small things can cause big headaches, as Morrisons discovered last week. A proposed store in Cornwall could be refused approval because of the possibility that dormice, a European Protected Species, might inhabit the site.

What are the potential unforeseen problems a planning application can face?

The planning process can be highly unpredictable. Apart from laws protecting wildlife, an application might also be complicated by local protests, contamination issues, obscure procedural details or even, as in one bizarre 2005 case over a shopping centre in Bury St Edmunds involving a curse. Wildlife problems are common, with anything from bees to newts causing problems.

Do retailers really need to worry about minor details?

In short, yes. While it is rare for the more unusual complications to completely derail a scheme, simply resolving even minor points to an application process can take a long time. Where legal advice is needed, as the more obscure planning issues often require, it can also become very expensive.

Why is planning such a big issue for retailers?

Property law is highly involved and convoluted and often takes an expert to navigate it.

CB Richard Ellis retail planning director Nick Diment says that over the years planning has become increasingly complicated. He says: “There is a culture of scrutinising applications these days. We are seeing more and more schemes getting the lawyers involved.”

This is particularly the case for the competitive grocery sector, where rivals carefully pick over each other’s applications.

What can retailers do?

Sit down with a local authority and discuss a proposal before an application is even put in, this way there will be fewer nasty surprises further along the line.

Diment says: “Gone are the days when you just put in an application and think ‘that ought to do it’. It has to be belt and braces in this day and age.”

But even this, he says, doesn’t totally protect you because an application process is so open and filled with potential hurdles. “Nothing guarantees that there won’t be complications from other parties and even competitors”.

Ultimately the golden rule is to be thorough and cautious right up until approval is confirmed.