Plans for a new Tesco supermarket in a Mid Wales town are dividing residents, according to a local councillor.

The supermarket giant has confirmed it is investigating opening a store in Machynlleth, with the preferred location believed to be the former Travis Perkins site in Doll Street, Machynlleth.

But some residents fear a Tesco store would put small shops out of business.

And last week members of the Pumpkins not Profits campaign group carved the words “No Tesco” into pumpkins lining the town’s streets.

But Councillor Michael Williams, Powys County Council member for Ma-chynlleth, said many residents would welcome a Tesco supermarket.

He said: “Many people have spoken to me about the possibility of Tesco coming to Machynlleth and I feel opinion is divided exactly down the middle. I have people coming to me worried that small businesses will be forced to close if it comes.

“But then I know people who travel to Aberystwyth, Shrewsbury or Newtown to do their shopping at the moment, who say they would stay in the town should Tesco open.”

Councillor Williams said he would wait to see a planning application before making his own mind up.

“I will sit down and study the planning application if it comes in before making my judgement, but I can see it from both sides at the moment,” he said. “Nothing has been confirmed in writing as of yet, so we will have to sit and wait for something to be announced.

“Then it would be so big I feel that the town may need to be consulted on it. It would have big implications for the whole town.”

Felix Gummer, Tesco spokesman, said: “We can confirm we are currently looking into a possible site in Machynlleth and are currently in negotiations with developers. We are always looking for potential new sites across the country.”

Last month, plans for a Tesco store off Pool Road, Newtown, were given the go-ahead by Powys County Council’s planning committee.

The plans had been on hold with the Welsh Assembly Government for 18 months after it requested improvements to the planned road layout.

By Andrew Morris