Woolworths Group had planned to build the liquor mart near Darwin airport, but in December last year announced the review after community backlash.
Concerns were raised about the potential health impact on the nearby communities.
Yesterday, the review chair, lawyer Danny Gilbert AM, delivered the panel’s findings and recommended the development be scrapped.
“The Gilbert review has made it clear that we did not do enough in this community to live up to the best practice engagement to which we hold ourselves accountable,” Woolworths Group chairman Gordon Cairns said in a statement.
“In particular, we did not do enough stakeholder engagement with a range of Aboriginal and Torres Strait Islander communities and organisations.”
The community-controlled Danila Dilba Aboriginal health service was among the opponents of the development.
“The proposed liquor store risks harm to health arising due to increased availability of alcohol,” the organisation said on Facebook.
“This includes direct health consequences from alcohol consumption, as well as ancillary harms from increased alcohol use, such as alcohol-related violence.”
The Australian Medical Students Association also spoke out against the plan, saying it showed a “blatant disregard” for the health, concerns and values of the local community.
Woolworths Group CEO Brad Banducci said the recommendations of the review would help the company improve its processes.
“More importantly, it will create a platform for working better together in our engagement with Aboriginal and Torres Strait Islander peoples,” he said.
The Woolworths Group is set to respond to the review in full by mid-June.