FURNISHING giant IKEA will not set up shop in Sheffield and has withdrawn plans for a £30 million development near the Parkway.
The Swedish company says it has given up the idea after too much opposition to its out-of-town location.
UK property manager Scott Cordrey said: "With current planning policy and the anticipated retail quarter development in Sheffield, it was clear that we would struggle to get local authority support for this scheme at the Parkway.
"We have no current sites identified in the city."
The news will disappoint IKEA shoppers who travel to Bradford or Nottingham.
But gaining planning permission off the Parkway in Sheffield was always going to be problematic.
The government's planning regulations favour the revival of city centre retailing at the expense of out-of-town developments.
It was three years ago when IKEA first unveiled plans to set up store on the site of a former YEB depot off the Parkway, with the promise of 500 jobs.
It prompted objections from city centre retailers and Sheffield One, the city centre regeneration agency, which argued that an out-of-town business like IKEA would damage trading in Sheffield city centre.
David Curtis, the council's head of development, said: "We had a number of major concerns with the application."