SUPERMARKET giant Sainsbury’s last night said it was “reviewing its options” after plans for a rival’s new store were approved.

Plans to expand Bicester Village and build a new Tesco store opposite its current Pingle Drive site were unanimously approved by Cherwell District Council on Thursday.

Sainsbury’s had warned if the Tesco plans were approved it could threaten the vitality and viability of Bicester town centre and its current redevelopment.

The supermarket also threatened to stop work fitting out its new town centre store.

There will now be a three-month period where the Secretary of State for Local Government will decide whether to call in the decision or ratify it.

Any party, including Sainsbury’s, can also force a judicial review over the decision within the three-month period.

As part of the Tesco/Bicester Village plans, £11m of road improvements will be built to ease congestion in the area.

Tesco spokesman Simon Petar said the firm could not give a start date for its new store as the highways work had to be completed first. But he said generally a supermarket took about a year to build.

Bicester Village spokesman Miranda Markham added: “The decision recognises the years of work to deliver a solution to the traffic congestion.”

A spokesman for Sainsbury’s said: “We are obviously disappointed and will now be reviewing all our options.”