Tesco has abandoned plans to create what would have been Britain's biggest supermarket because of the cost and complications associated with changing the layout of a nearby road.

The retailer recently began the design process to extend the Purley Extra store from 82,000 sq ft to as much as 139,000 sq ft after holding several rounds of public consultations.

But it said it had shelved the scheme after talks failed to resolve issues surrounding a re-routing of the A22.

"We have decided to put the scheme on hold partly because of cost of a new road and also because of problems reaching a consensus on the requirements for the new layout," said a spokesman for Tesco. He said the south London store would instead be given a major refurbishment.

Meanwhile, the retailer has lost out on a bid to open its first town centre split-level store.

It had put in a bid for a two-storey store in King Street, London, but Hammersmith and Fulham Council gave the town centre regeneration project to a Grainger and Helical Bar development, which includes plans for a 28,000 sq ft Waitrose, retail units, housing and restaurants.

Tesco said it was searching for more split-level town centre sites to open stores with the full Extra range - though it insisted they would not be department stores, as newspapers recently reported.