CONCERNS have been raised that Aldi’s plans for a new supermarket on a former sweet factory site could force another of its nearby stores to close.

A report commissioned by Poole council warns that the close proximity to its existing Wallisdown shop could “divert” a “large amount” of trade from it.

However, Aldi says that the impact a new supermarket in Alder Road could have has been “significantly overestimated”.

The German firm submitted plans to build a new store, along with a Costa Coffee outlet, on the former Parrs Confectionery site last year.

The discount chain said that development would “significantly enhance” the shopping choice within Poole and create dozens of new jobs.

However, determination of its application has been delayed while the council and Aldi’s planning agent consider the impact the new store would have on nearby supermarkets and that the site has been allocated for a care home.

A report by property consultants GVA, commissioned by Borough of Poole, warns that the Alder Road supermarket could cause Aldi’s Wallisdown shop to lose 20 per cent – the equivalent of about £1.9 million a year – of its turnover.

“There is a particular concern over the impact on Wallisdown due to the large amount of trade likely to be diverted from the existing Aldi store, the overlapping catchments of the two stores and the potential for the Wallisdown Aldi to close as a consequence of the new store opening,” it says.

The report adds: “Our assessment indicates the Wallisdown store will perform reasonably well although it is dated in appearance with a small car park and it is quite possible that a sizeable proportion of existing shoppers will switch to the new larger and more attractive Alder Road store.

“Whilst there is no evidence to suggest that Aldi would definitely close the Wallisdown store should the proposed store get permission and open, the possibility cannot be rule out given the proximity of the two stores.

“Such an outcome could well be significant for the health of Wallisdown.”

However, representing Aldi, Planning Potential associate Alan Williams, says the impact would be less than half of GVA’s estimation.

“To assume that the large majority of these people will change their shopping patterns to visit the Alder Road store instead of the Wallisdown Road store is unrealistic and overstates the draw to the Alder Road store,” he said.

“The more realistic position is that less than half of residents will be diverted to the Alder Road store as the Wallisdown store may remain the closest and most convenient store for many.”

Dozens of letters supporting Aldi’s application have been submitted to the council and more than 300 people backed its plans in a consultation last year compared to 37 who opposed it.

The time period for determining the application is expected to be extended again so that the issues can be considered by the council.