Plans to build a new Tesco at Capitol Park in Thorne have been scrapped.
The development at Omega Boulevard was set to create up to 130 new jobs but the company announced they are pulling out of the scheme.
In a statement, the supermarket giant said their performance as a business had fallen “significantly short” of where they would want it to be.
It added financial resources they have available for new investment are “severely constrained”, meaning they are unable to proceed with 49 new planned stores nationwide, including the one at Thorne.
The statement continued: “We are very sorry that we have not been able to deliver the investment that we intended. We know this news will be a real disappointment to many people in your community and we are extremely grateful for the support we have received for our plans.”
Thorne and Moorends Town Council said they are keen to work with Tesco to secure an alternative proposal for the site.
Council leader Ron Powell said: “With rapid progress being made on other developments on this site it is important that an alternative scheme is developed quickly for the supermarket site so that new jobs and amenities can be brought to Thorne.
“Development options which complement other parts of Thorne will also be considered as part of the next phase of the Neighbourhood Plan.”