A planning application has been submitted to demolish Tesco's city centre store and rebuild it with a hotel above. Spenhill Developments Ltd, which is owned by Tesco, wants to turn the Tesco Metro and Avon and Riverside Houses in Castle Street into a replacement ground floor shop with a 65-bedroom hotel.
A public exhibition was held in the city in April 2013 and many concerns were raised about the impact the hotel would have on existing businesses in and around the city, with bed and breakfast owners saying it could ruin their livelihoods.
In September 2016 Tesco has re-launched a bid to turn the vacant Malmesbury Arms on Wilton Road into an Express store, extending the building to the rear. Two first-floor flats will be lost if the plans are approved. Previous proposals submitted in 2013 and 2014 were withdrawn following discussions with Wiltshire Council.