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Will new Lidl supermarket be allowed near Warwick and Leamington?

Local News by James Smith 7th Oct 2026  
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Councillors will be given the chance to have their say on a new Lidl near Warwick and Leamington Spa.

A decision on the demolition of Europa House to make way for the supermarket was pulled before Warwick District Council's planning committee last month after concerns were raised that other sites had not been given enough consideration.

Planning policies state a 'sequential test' is needed for retail spaces and that town centre locations should be prioritised before an out-of-town site is considered.

Lidl wants to build the new supermarket on the edge of Heathcote Industrial Estate. The major retailer already has outline permission to flatten Europa House.

Since the application was pulled from consideration before last month's meeting, a new council report has considered whether town-centre options were properly considered.

"Consideration was given to alternative sites by the applicant including Covent Garden car park, Leamington Spa and Chandos Street Car Park, Leamington Spa," the report said.

"Regard was given within the sequential test to the key catchment areas including those identified by the applicant's assessment which included Leamington Spa town centre; Warwick town centre; Othello Avenue Local Centre; Coten End Local Centre; Heathcote Road Local Centre; and Home Farm Local Centre.

"Concerns have been raised during the consultation period that the rejection of the Covent Garden car park site is unjustified as a sequentially preferable alternative site.

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"The concern raised is that flexibility should be applied in terms of the format and scale of the development proposed when considering the sequential test."

The report included comments from property consultants Lambert Smith Hampton who were commissioned and found no sites that were "sequentially preferable, suitable or available to accommodate the proposed development, even when allowing flexibility for the format and scale of the proposal".

"In conclusion, having regard to the above and information available including the most recent clarity from the council, officers consider that the sequential test has been met," the council's report continued.

A decision will be made on Tuesday 13 October.

Click here to see the council's report in full.

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