Tesco has been ordered by the Competition Commission to stop work on a retail development in Slough.

It follows a long-running dispute over Tesco’s purchase and subsequent demolition of a Co-op supermarket on the site – a mile from one of the largest Tesco stores in the UK.

Tesco told the Office of Fair Trading it would dispose of the store to a rival, but only after it had used it as a temporary store while it refurbished and extended its existing store in Slough.

In 2004, Tesco moved into the Co-op. It moved out a year later when it reopened the extended and refurbished Tesco Extra store a mile away. The former Co-op remained derelict until it was demolished at the end of last year.

Rival retailers say the store being developed is too small to compete with the neighbouring Tesco hypermarket.