DISCOUNT supermarket Lidl is to build a store to serve Eaglescliffe, the south of Stockton, Yarm and Ingleby Barwick, after being granted planning permission.

The retailer will build the store on the former Nifco factory site, on Yarm Road, Stockton, next to the Cleveland Meat Company abattoir, creating 40 new jobs.

Stockton Borough Council's planning committee approved the scheme despite concerns raised over the impact on Lidl's Stockton town centre store, in the Wellington Square shopping centre.

The council released a report in December warning that the loss of the Wellington Square Lidl - one of its biggest drivers of footfall - would have a serious impact on the viability of Stockton town centre.

But Richard Huteson, of Lidl's agents Rapleys, told the meeting the Wellington Square store was "failing to meet Lidl's requirements" and it was looking at two new, larger, town centre sites, as well as the Yarm Road store.

He said the German supermarket group wanted to keep a presence in Stockton town centre, and the Yarm Road store was just about expanding its existing portfolio.

He added: "Lidl has been served a notice that their tenancy will expire (at Wellington Square). It is Lidl's intention to continue to trade in the town centre in the immediate future but the store there does not meet its requirements."

He said other town centre sites were being considered.

But Daniel Osbourne, of Wellington Square owners M&M Asset Management, said Lidl had refused to enter into discussions over renewing its lease, which expires in September.

"M&M is very concerned that the town centre food store will close and create another vacant town centre site, which already has high vacancy rates," he said.

He asked for a restriction to require Lidl to retain its town centre store for at least ten years.

Councillor Paul Kirton said: "Lidl has made every excuse why they are not going to stay in the town centre. It would be a disaster for Stockton town centre if the store there was withdrawn."

But other councillors said it was unreasonable to force a private company to keep a site for ten years.

Cllr Tina Young said: "I don't think there would be anybody in this room would want a supermarket within Stockton High Street lost - but this is an application for a building on Nifco."

Others said the Yarm Road site, which would include an in-store bakery and 150 parking spaces, would be successful in the south of Stockton.