PLANS for a giant supermarket distribution centre on the outskirts of Exeter, which would have brought more than 400 jobs to the city, have been put on hold indefinitely.
Sainsbury's has revealed that its planned 500,000 sq ft depot near Exeter Airport is not needed in the near future.
The depot, due to be nearly 10 times the size of the company's Alphington supermarket, was to serve 35 stores in the South West, including Devon and Cornwall.
It was the first phase in the long-awaited Intermodal Freight Facility, known as Exeter Gateway, which forms part of the Exeter & East Devon Growth Point.
Around 450 jobs were expected to be created once the depot was fully up and running, the majority of whom would be recruited locally with full training provided.
Now Sainsbury's and East Devon District Council have announced a review of their plans.
Vince Prior, head of property investment for Sainsbury's, said: "Since receiving planning approval in September 2011 we have invested significant sums in preparatory works to deliver a fully serviced and remediated site.
"However, we are continually reviewing our logistics network to enable us to drive improved service to stores, support our business plans, increase efficiencies and deliver savings that will allow us to further invest in our customer offer.
"In light of this, we have concluded that there is no immediate requirement for a depot at this location at this time.
"Although this news is disappointing, our research shows that there could be future demand for a depot in this location.
"We are therefore currently working with East Devon District Council to review our options and can update the local community once the review is complete."
Derek Phillips, vice president of Exeter Chamber of Commerce, said: "We are disappointed that these promised jobs will not be coming as quickly as hoped for, but we still hope they will develop the site eventually and produce those jobs as they open more branches in the South West.
"We were surprised at the delay, bearing in mind the enormous amount of work that's already been done on the infrastructure, but that's presumably a sign of the national market.
"They have done their sums again and decided not to move forward at this particular time. It's going to be two or three years now at best before those jobs materialise.
"We understand that they are looking to develop part of the site and lease that space to a third party and we hope they will be successful in doing that so we do get some jobs."
In addition to the main site, Sainsbury's interest also includes seven acres of land to the rear of the site for the planned logistics centre.
"This land has always been surplus to our requirements in terms of developing the main centre and we intend to bring forward development on this rear portion of the site independently," said Mr Prior.
"We are also continuing to invest in the South West through our portfolio of approximately 80 stores, which employ more than 15,000 people, including our store at Ottery St Mary, and are always seeking new opportunities in the area."
East Devon District Council leader Councillor Paul Diviani said: "If businesses did not review their operations constantly they would inevitably stagnate, and while I am disappointed to hear of a delay in the site being progressed as originally envisaged, this reassessment is understandable.
"We have pointed out that Exeter is the fastest growing city in the country ahead of Manchester; coupled with all the activity in the Exeter and East Devon Growth Point, the dynamism of our joint developments will stimulate further retail activity and I expect renewed vigour in the sector in the future.
"We have agreed to work closely with Sainsbury's to achieve our common goals."
The site of the Exeter Gateway freight facility covers approximately 29 acres.