A controversial new £10 million supermarket planned for the outskirts of Shrewsbury is still needed despite the recent decision to give a new Waitrose store the go-ahead nearby, a new report has said.

The new report from Nathaniel Lichfield & Partners has been commissioned by developers Morbaine, who want to build the superstore on land off Hereford Road in Meole Brace.

It claims there still is ‘significant scope’ for a new store to sell convenience goods and adds the store should not have a major effect on the sales of its rivals.

The report follows Shropshire Council planning chiefs giving the go-ahead for the creation of a new Waitrose store in Oteley Road last month. It will open in late 2014 as part of a £40 million scheme which will see Percy Thrower’s Garden Centre relocated to new 60,000 sq ft purpose-built premises.

But the report in support of the rival supermarket, which bosses say is likely to be one of either Tesco, Sainsbury’s, Asda or Morrisons, said the viability of the Hereford Road store would not be affected by the Waitrose decision.

It added the town’s other existing major supermarkets ‘should be able to withstand’ the arrival of the two new stores, given their current strong performance levels.

“All of the main existing competing stores are performing strongly, and achieving levels of turnover which are significantly above their respective company averages,” it said.

“These stores should be able to withstand the likely trade diversion impact resulting from the new Morbaine store, even when considered alongside the proposed Waitrose.

“This is not least as, when taking all four existing stores together, they are performing at a level around £56 million above their expected turnover – which is more than the combined turnover of committed and proposed floorspace, around £54 million.”

If given the go-ahead, the supermarket will create about 180 jobs. But the proposals are facing opposition. Simon Airey, owner of Corner Exotics and former president of Shrewsbury Business Chamber, said each further supermarket would ‘increasingly damage’ the town centre economy.

See also:

• Waitrose store in Shrewsbury set for go-ahead
• Fear £10m store will hit Shrewsbury town centre trade
• Shrewsbury store wars erupt as rival bids submitted