Lidl is expected to submit revised plans after failing to impress a planning officer first time round.
A proposal for a second store in Borehamwood was meant to be discussed by the planning committee at Hertsmere Borough Council on December 16.
But Lidl withdrew its application before the meeting took place.
The budget supermarket chain, which already has a store in Borehamwood Shopping Park, wants to build a second store in the town- on the Lupa House site in York Way, off Elstree Way.
However, after a planning officer scrutinised Lidl's plans, they recommended the application be refused.
They were concerned that the new store would take away business from Borehamwood town centre.
According to the officer's report, Lidl "failed to demonstrate to the council's satisfaction that the new store would not have an impact on the vitality and viability of the town centre".
Concerns were also raised about plans for a new road junction which were described as "confusing".
Lidl has previously said the York Way store would not be a replacement for the existing store and said it will be resubmitting its plans following feedback.
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