Tesco has scrapped plans to build a superstore on the edge of Ipswich town centre after concluding that it already had enough large stores in the wider area.

However, the multiple plans to proceed with the planning application for the site in Grafton Way with the aim of selling it to another retailer or developer. The application, which includes proposals for an Extra store, apartments and hotels, was initially granted in 2010 but has since faced legal challenges.

The decision chimes with chief executive Philip Clarke’s announcement last month that the group intended to focus more on convenience this year.

A spokesman for Tesco said: “Following a recent review, we have concluded that we do not need another Extra store in central Ipswich.

“However, because of the importance of the Grafton Way site to the community and its suitability for a mixed-use development, we have decided to proceed with our current planning application which, if approved, we will then look to sell to a developer or another retailer.”

Town centre business group Ipswich Central welcomed the announcement, arguing that the plans would have harmed the wider town centre retail offer.

He added: “Given their formal announcement today, my instinctive reaction is that we would not be in favour of a new, speculative, consent being granted on Grafton Way.

“The town centre must instead prioritise its current development and redevelopment opportunities, and then commit to delivering them in that priority order, one-by-one.”