Tesco is pursuing plans to establish its first store on the Isle of Skye, with a potential opening by the end of 2028. Developer West Ranga Skye Limited has lodged a detailed planning application with Highland Council for a food store and fuel filling station in Portree, according to BBC News. The proposed development represents a significant retail expansion for an island that has long lacked major supermarket competition.
The site, located near Portree's new link road, occupies land that the local authority had previously identified as suitable for supermarket development. West Ranga Skye Limited estimates the store could create approximately 100 jobs for the island. If planning permission is granted, construction could commence in summer 2027, positioning the retailer to meet its 2028 completion target.
Why does Skye need another supermarket?
Competition in Skye's grocery market has been limited for years. Co-op currently operates as the island's largest food retailer, running three stores across Skye. This dominance became a critical issue in 2025 when a cyber attack struck Co-op systems, leaving shelves empty and highlighting the vulnerability of relying on a single major retailer. The incident prompted Kate Forbes, then the island's MSP, to initiate discussions with major retailers about establishing alternative options and fostering genuine competition.
What happens next?
The planning application now moves through Highland Council's assessment process. West Ranga Skye Limited must secure formal planning permission before construction can begin. The timeline suggests that if approved promptly, groundwork could start in summer 2027, with the store operational by late 2028. The outcome of this application will determine whether Skye's residents gain access to a second major supermarket operator and whether the island's retail landscape undergoes meaningful change.
