Plans for two new Co-op stores in Sandwick and Scalloway, Shetland, have been scrapped.
The projects were given planning permission in 2021 and property developer Seamount said at the time that they could open by early 2023.
However, Seamount now says a 50% increase in building costs and contractor availability meant it was “unable to proceed”.
The property developer said it would be happy to revisit the proposals if the situation with build costs changed.
A spokesperson for Co-op told The National: “Co-op is committed to serving Shetland communities from its stores in Brae and Lerwick and, while we do not own the proposed new sites, nor have control or involvement in the development, we share the developer’s disappointment that works are unable to progress at this time.”
