Asda: Shoppers' fate in minister's hands?

Ms Blears, the secretary of state for communities and local government, will have the task of appointing a planning inspector to decide on any appeal by Asda after its plans for a store were rejected by councillors.

It is also expected that Ms Blears' civil servants will want to decide the application by Sainsbury's for another out-of- town superstore about half a mile to the south along the A29.

They could 'call in' the application, even if Arun District Council approves it, because of its potential impact on the town centre.

This could mean the inspector holds a two-pronged public inquiry next year into whether Bognor's existing shops can withstand the fierce competition from two new major retailers along Shripney Road.

The outcome could leave Bognor's shoppers in despair without either of the new stores and being stuck with the current outlets.

It could mean one is approved and one rejected or both stores are approved to the delight of the town's residents. Hundreds of jobs will also depend on the decision.

Arun District Council chief executive Ian Sumnall told the Observer: "I think it is more likely than not that this issue is going to be determined by the secretary of state.

"I can see a situation where we have an inquiry into both store plans taking place in the late spring and early summer. The matter would then be out of our hands.

"The inspector will not be looking at the brand of the stores but at their effects on the town centre and which has the least effect."

An Asda spokesman said after the company was defeated by councillors last week: "We are considering appealing. But we need to receive the refusal notice from the council and think this through carefully."

The Sainsbury's store is big enough to warrant the government intervening directly to uphold its policy of protecting town-centre shops from an onslaught of out-of-town retail sites.

The fight by both Asda and Sainsbury's for the spending power of Bognor's shoppers concerns the biggest shake-up in the town's retail scene for 20 years.

Not since the Tesco store along Shripney Road was granted planning permission in 1988 and the two retail parks to the north quickly followed has there been such a clamour by national firms to come to the town.

The application for the Sainsbury's store for the former Lec site was formally presented to the council last week.

It is for an even bigger store than Asda proposed '“ 55,000sq ft of selling space compared with 48,000sq ft. Most of the shopfloor '“ 90 per cent '“ will be devoted to traditional grocery products.

The Sainsbury's store is considered to be as much an out-of-town proposal in planning terms as the Asda scheme.

Mr Sumnall said he expected the Sainsbury's proposals to be considered by councillors in the spring.