Tesco has been given the thumbs down by An Bord Pleanála for a mixed-use development in Sandymount because its height and scale "by reason of overlooking and overbearing" would have a negative impact on the area.
The supermarket chain has lost its first party appeal to the board to allow it to build a five-storey over basement building at its village site in Sandymount.
It was previously refused permission by Dublin City Council for the building which would incorporate a 1,611sq m (17,340sq ft) store with 23 apartments and duplexes above on a 0.53-acre site.
The proposal caused a stir in low-rise Sandymount village where the proposed supermarket was described as having a "barn-like appearance".
Dublin City Council ruled that the size would detract from the village, which is a conservation area. The "poor quality" of the residential element was noted by planners, as well as the traffic congestion that it could cause.
Tesco argued that a new store with a residential element in a "more aesthetically pleasing envelope" would make for a more sustainable development. However An Bord Pleanála supported Dublin City Council's ruling, saying conflicting traffic movements between commercial and residential on the site would endanger public safety.