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Another 75 jobs are set to be created on the Island with news Lidl is looking to move into the Neats Court retail park.
If approved, it will occupy a building between the existing B&M and Poundland stores.
A change of use proposal has been submitted on behalf of the German-owned chain to allow food sales at the currently empty unit.
Giles Haywood, of LXB Retail Properties, the developer behind the £25m transformation of Neats Court, said: “Lidl is a well-known national retailer.
“Potentially, it will bring new jobs and more competition for businesses which is good news for local people.”
Mr Haywood said Lidl is looking to “progress” its Island store as well as a supermarket which the company is opening in West Street, Sittingbourne in April.
Neats Court currently houses five big-name businesses.
A decision is expected in January on a plan to bring a Marston’s pub to the site.
If agreed, building work will start in March.
Subject to planning approval, other units will be filled by Sports Direct and Pets at Home, with proposals for a £50 million Aldi distribution centre also in the pipeline on land opposite Morrisons.
Developers estimate Lidl will generate about £2.2million of turnover based on latest sales figures.
In a letter outlining its proposal to the council, Rob Scadding from Planning Potential Ltd, said the store would add to Islanders’ shopping experience.
He said developers, LXB, had provided £415,000 towards Sheppey bus and public transport services to improve connections to Neats Court.
Mr Scadding said £100,000 had has also been secured “to enhance the shopping environment and attractiveness” of Sheerness town centre.