New £21million supermarket at former Londonderry Homebase site set to create 200 jobs and boost economy by £4.6 million
Plans submitted for redevelopment at Crescent Link Retail Park set to improve shopping and traffic facilities
Supermarket giant Sainsbury’s has submitted plans to develop a new £21million supermarket in the Waterside, Londonderry, aiming to revitalize the former Homebase unit at the Crescent Link Retail Park.
The proposal, formally submitted to Derry City & Strabane District Council on October 27, follows a series of public consultations earlier this year. The supermarket is expected to support around 200 new on-site jobs, equivalent to 130 full-time positions, with the majority likely to be filled by local residents. According to economic assessments, the development could generate up to 145 net additional full-time jobs and contribute £4.6 million annually to the local economy. Construction, expected to last approximately six months, will also provide a temporary boost to the building industry, contributing an estimated £15.2 million in economic output.
The redevelopment will retain the existing Homebase ground and mezzanine floors, while converting the former garden centre and canopy into additional customer parking. A new Argos ‘store-in-store’ warehouse will also be included, with a total sales floor area of 4,444 square metres (47,834 square feet).
Traffic concerns were the primary issue raised during consultations. However, transport assessments indicate that the redevelopment will only slightly increase vehicle trips and that planned junction and internal layout improvements will enhance safety and traffic flow.
The proposed development would also benefit the council financially, with projected Non-Domestic Rates estimated between £534,000 and £660,000, of which 50% would go to Derry City & Strabane Council.
If approved, the Sainsbury’s store will not only create significant local employment but also provide a boost to the Waterside economy and surrounding businesses.
The Planning office confirmed: “The Sainsbury’s planning application was received on 27th October 2025 ref: LA11/2025/0761/F and is open for consultation at the moment.”