Supermarket giants in deal on Wolverhampton land

A decade-long feud between Tesco and Sainsbury's in Wolverhampton ended today after the supermarkets came to a deal over disputed land.

Tesco has agreed to sell land it owns in Raglan Street to Sainsbury's as long as it is given planning permission to build a new superstore at the Royal Hospital. The move will pave the way for hundreds of new jobs.

That will be welcome since the city has the second highest unemployment rate in England.

Sainsbury's owns 86 per cent of Raglan Street and its superstore there would provide 500 jobs, although this includes people working at the current store at St George's Parade. Tesco's new supermarket would create around 600 jobs.

The supermarkets fought a battle that went all the way to the Supreme Court after Wolverhampton City Council favoured Tesco to build on Raglan Street, despite Sainsbury's interest.

Tesco was going to turn the Royal Hospital into shops, apartments and a base for the city's Primary Care Trust. The Supreme Court decided in favour of Sainsbury's last year.