Sainsbury’s in New Cross Gate says its redevelopment plans are at risk because of a proposal to build an underground station on the site.

A Sainsbury’s was opened on New Cross Road in 1996, and the supermarket now wants to redevelop to provide a new flagship store and new homes.

However, this could be squashed because of Transport for London (TfL) proposals to build a Bakerloo Line station on the New Cross Gate site – where the current Sainsbury’s car park is located.

If these proposals are granted - Sainsbury’s say they would be forced to close their store, resulting in job losses.

However, TfL insists that no decision has been made on where they will build the new station.

A spokeswoman for Sainsbury’s told News Shopper: "We are planning to invest millions of pounds into the area.

"We want to redevelop the site to provide a new supermarket and up to 1,400 homes, a significant number of which will be affordable.

"This will also act as a springboard for further investment and development in the local area, as well as creating hundreds of local jobs."

Sainsbury’s has teamed up with London developer Mount Avril as part of its planned New Cross Gate investment.

But the spokeswoman warned: "If TfL insist on putting a new station on our car park it will stymie regeneration and planned investment across New Cross Gate and put the future of our existing store at risk.

"We have identified an alternative location for a station and are continuing to talk to TfL."

This alternative location is believed to be on the vacant Goodwood Road.

Chris Porter, Transport Planning Manager for TfL, told News Shopper plans for a new station are at an early stage and nothing formal has been decided.

He said: "A public consultation on proposals for the Bakerloo line extension took place last year, giving local people and businesses the opportunity to help shape the plans in the early stages.

"We are currently reviewing the responses and further public consultations will be held before any final decisions are made."