Lidl won’t be opening a supermarket at the £25 million Neats Court retail park.

The cut-price German food store had been in talks to move into an empty unit between the B&M and Poundland stores and create up to 75 jobs.

But this week Giles Haywood, of developer LXB Retail Properties, admitted: “We were previously in discussions with Lidl about taking space on the scheme.

Unfortunately they took the view the park was not right for them from an operational perspective.

We are now in discussions with several other national operators with regard to the empty units.”

Developers had already submitted a change-of-use application to Swale council to allow the unit to sell food. Lidl has gone ahead with opening a store in West Street, Sittingbourne.

Meanwhile, family brewer Marston's has started work on its new pub behind Morrisons next to the A249.

Mr Haywood confirmed: “Marston’s have now acquired a plot from LXB and we understand they will be looking to commence construction shortly.

"We think Marston’s will be a fantastic addition to the scheme and the Isle of Sheppey generally.” It had been hoped the pub would have been open by the summer.

Sports Direct has also opened a store on the site near Morrisons’ supermarket and ground work for a £50 million Aldi distribution centre is gathering pace.

LXB has provided £415,000 towards Sheppey bus and public transport services to improve connections to Neats Court and has handed over £100,000 to Swale council to “enhance the shopping environment and attractiveness” of Sheerness town centre.