Tesco has scrapped plans for a new superstore in Margate after five years of battling to secure planning permission.
The supermarket giant, whose finances are currently being investigated by the Financial Conduct Authority (FCA), said the decision to terminate its contract for the 82,000 sq ft store was a result of the changing habits of shoppers.
Communities secretary Eric Pickles approved plans for the store in June 2013 following a public inquiry.
The store was planned for the car park of Arlington House tower block, next to Dreamland theme park, with the flats being renovated as part of the project.
A Tesco spokesman said: "As we’ve previously announced, we are reducing the number of large stores we open each year as a result of changing customer shopping habits.
"After careful consideration we have therefore decided not to pursue a new large store in Margate. We’d like to thank everyone who supported our plans and will continue to serve the local community through our other stores in the town and our online grocery shopping service."
A Thanet Council spokesman added: "The council is positive about the future of the site given its proximity to the new re-imagined Dreamland and the upwards trend of exciting regeneration in the area."