A BATTLE between the Co-op and Tesco over the food retailing future of Chester-le-Street has ended in victory for Britain's biggest retailer.

The Co-op fears plans for a Tesco superstore on the edge of town may spell closure for its own long-established branch in St Cuthbert's Walk, right at the heart of town.

It sought a judicial review of Chester-le-Street District Council's decision last May to grant planning permission for the new store in the South Burns area of town.

The store promises to form the centrepiece of the £12m redevelopment of the bottom end of Front Street.

But after a three-hour hearing at London's High Court, Mr Justice Collins yesterday dismissed the Co-op's chall-enge as unarguable and in any case brought to court too late.

The court heard developers on behalf of Tesco put in their planning application just as a Government planning inspector was considering a proposed blueprint for the area.

At the public inquiry the Co-op objected to the allocation of the site for retail development on grounds that a major food store on the site would threaten its branch with closure.

In his report, the inspector accepted that a new superstore was likely to have an impact on the Co-op branch, but said it was unlikely to be so severe as to force it to close down and was unlikely to substantially harm the vitality of the town centre.

But the inspector also observed that the most recent retail impact study carried out in the area dated back to 1997 and it would be beneficial for a more up-to-date and accurate survey to be carried out.

In court, lawyers for the Co-op argued the council had failed to take adequate account of the latter observations and asked the judge to overturn the planning permission.

But Mr Justice Collins said the inspector's comments were merely observations, not recommendations and still less requirements.

Reacting to the decision, Steve Warren, regional secretary for Co-op North-East, said it could lead to reduced opening hours at its store.

"We are very disappointed at the outcome of this inquiry," he said.

It was hoped that work on the store could start this summer, but an application for the compulsory purchase of remaining land may slow developments.