Construction on a new large warehouse-style supermarket on the outskirts of Douglas could begin early next year, those behind the proposals say.
The Isle of Man Development Company (IOMDC) submitted the application more than 10 months ago, which would pave the way for frozen food retailer Iceland to build a new ‘Food Warehouse by Iceland’ at the Spring Valley industrial estate.
However, progress has stalled since the application was submitted in October 2025 amid opposition from Douglas City Council and nearby businesses.
Instead, the applicant has been working on amended plans following concerns raised over traffic and parking, while also considering alternative sites suggested by government.
In the latest update, IOMDC managing director Sarah Brew said: ‘I can confirm that IOMDC and Iceland are still fully committed to delivering a new Iceland Food Warehouse at the Spring Valley Trading Estate.
‘Since the plans were submitted last year, we have been making a number of changes to the scheme to reflect comments that have been received from various statutory consultees and officers within DEFA.
‘Final versions of the plans have recently been submitted with a view to having the application determined within the next few months. If planning permission is granted, we would then be looking to start work on the store at the beginning of 2027.’
Property consultants Lambert Smith Hampton were tasked with assessing alternative ‘urban unoccupied sites’. These included locations close to Strand Street in Douglas, the Westmoreland development site, South Quay and Victoria Road.
However, Lambert Smith Hampton said none of the suggested sites met the required criteria, either because they were too small, lacked accessibility or were not zoned for retail use.
Agrimark, Eden Park and Highways Development Control had all raised concerns about the impact the proposed store could have on traffic along Cooil Road and around both Eden Park and the industrial estate.
There is particular concern about the Fort North roundabout, although the applicant insists the increase in traffic ‘would not have any material impact’.
Agrimark has even submitted a CCTV photo montage showing a recent multi-vehicle crash on Cooil Road as evidence of traffic issues it believes would be worsened by the proposals.
However, the applicant said there are no plans to alter the road layout and argued the area does not have a poor road safety record.
In terms of parking, amended plans include infrastructure for additional EV charging bays, along with more disabled and family parking spaces.
Iceland said the new store would create 30 jobs and include a 72-space car park.
However, during an environmental services committee meeting in October last year, Douglas City Council objected to the application because the land is zoned for industrial rather than retail use.
The committee said existing policies are designed to protect and prioritise industrial land for employment purposes and safeguard the viability of retail in town and city centres.
The application is still under consideration by planners.






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