Supermarket giant Tesco is to use some of its undeveloped land in the UK for 4,000 houses instead of supermarkets.
The retailer has reduced its plans to expand in the UK, where it is estimated to own a landbank large enough to allow for 15,000 houses.
The new homes will be in the south east of England, with projections made for Welwyn Garden City and St Albans, as well as developments in the north and west of England.
If it goes ahead, it will be the largest housing project in Tesco’s history. It has not decided if it will build the properties itself or sell the sites to housing developers.
Britain’s biggest retailer is thought to have dropped many projects for large new outlets in favour of concentrating on smaller convenience stores.
Sales at out-of-town supermarkets are beginning to fall back as consumers opt instead for convenience stores and online ordering. Rising competition from budget retailers is also impacting negatively on profits.
Tesco plans to attract shoppers back by creating restaurants, cafes and bakeries in its hypermarkets.
The company has 3,400 stores in the UK, including 247 Tesco Extra hypermarkets and 482 traditional Tesco supermarkets.
A Tesco spokesperson said: “In places where we have already delivered housing schemes, for example in Faversham or Highams Park, the feedback from local communities and Councils has been very positive.
