Tesco has abandoned its plan to build a store in Kirkbymoorside.

The controversial scheme had been opposed by some residents because of the potential damage to the market town's shops.

Now the company has told the town council: "We know that some people will be disappointed with this decision and we're grateful for the support we've received in the past for our plans."

Mark Thomas, Tesco's regional corporate affairs manager North, said: "The shopping habits of our customers have changed in recent years with more people choosing to shop online and in convenience stores. In the light of this, we've reviewed our proposals for Kirkbymoorside and have made the difficult decision to not build a new store. We'll now look to sell the site at Ings Road and will be sure to keep the community updated on the future of the site."

He added: The business announced a reduction in our capital spending recently and this has led us to review our new store proposal. I know there was substantial support in the community for our plans and this was a difficult decision to make."

Tesco had planned to build a medium-size store at the former Russell's depot alongside the A170 at Kirkbymoorside.

Town Mayor, Councillor Chris Dowie said: "I would like to assure everyone that when new plans for the site are submitted, the town council will provide an opportunity for people to comment on them at a planning committee or full council meeting."

Tesco first submitted plans in November 2011 for what it described as a "store to provide local residents with a convenient weekly supermarket food shop". The plan had included an 80-space car park,a pedestrian crossing and would have created 100 full and part-time jobs.

The company also pulled out of a scheme to build a major store near Scarborough town centre, on the site of the former St Mary's Hospital late last year.