A no-frills supermarket is reviewing plans to open a store in a run-down street.
Cut-price shop Aldi had planned to move into the old Sainsbury's store in London Road, Brighton.
Traders hoped the chain would breathe new life into an area that has struggled in recent years.
But it has emerged that the German company is reconsidering the site, which has been empty for more than a year.
The Argus understands the store's first parking-free supermarket has not worked as well as expected, putting plans to open similar stores on hold. A final decision on the London Road branch has not been made but the lease is back on the market.
Roland Stanley, the property director for Aldi Chelmsford, said: "Aldi is reviewing the proposed site in London Road, Brighton, and will update residents accordingly."
There are about 5,000 Aldi stores worldwide, which all run on the same low-cost philosophy.
Goods are stacked on pallets and customers are charged for plastic shopping bags. The chain also supplies trolleys rather than baskets to cut costs.
Councillor Keith Taylor said: "It is a shame the shop has been closed and it adds to the problems when we have a large central site unoccupied.
"There should be a push so we can get it back in use as soon as possible to help revive London Road to its former vibrancy."
Coun Taylor, who represents St Peter's and North Laine on Brighton and Hove City Council, said he would like the new occupiers to offer local and fair trade products.
The London Road Sainsbury's, which was situated at the junction with Cheapside, near St Peter's Church, had served shoppers for 33 years.
It closed last February and moved a few hundred metres to the New England Quarter redevelopment.
The Open Market Traders Association has published plans to turn the land between London Road and Ditchling Road into a continental-style covered area with 70 stalls, flats and a central square. A total of 40 homes would be built and managed by Hyde Housing.
St James Investments has also outlined plans to redevelop the area around Preston Circus and London Road.
What should be done to revive the London Road area? Leave your comments below.
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