RAMSEY Town Commissioners have said they are "heartened" that a planning application by Next was refused.
Earlier this month it was revealed that Next Plc's application for an out of town retail store had been blocked by government planners.
The company had applied to sell furniture, household goods, decorating items and children's wear in a retail unit on the Spring Valley Industrial Estate.
However this was refused because some of the items, particularly the children's wear, were not considered "bulky".
Government said it supported the retail sale of bulky goods in out of town locations but clothing and other types of comparison goods should be sold within existing town centres to "protect their vitality and viability".
Discussing the issue at the January meeting of the commission Ramsey Town Commissioners said they were pleased the plans had been rejected and remained firmly of the opinion that there was no evidence of demand for the store.
Captain Nigel Malpass said: "At a time of increasingly challenging trading conditions, and when local authorities are investing in regeneration schemes to revitalise retail activity in town centres, establishing more out-of-town retail operations will have an Island-wide detrimental effect.
"It is vital we support local businesses and the commissioners will continue to actively oppose any such further applications.
"In this regard we applaud the government for recognising the negative impact out-of-town retailing will have on our towns and villages and, ultimately, on the Island's economy."
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