SAINSBURY'S has announced plans to open a store in Tadworth which will create up to 25 jobs.
But there are fears the convenience store, which would be on the site of the Mini Cooper garage in The Avenue, would have a negative impact on the village.
An application to convert the car showroom into a food store will be submitted to Reigate and Banstead Borough Council shortly.
The Sainsbury's proposals include demolishing outbuildings to create parking spaces and sub-letting the rear part of the building for a separate commercial use, such as an MOT business.
But Tadworth traders have mixed feelings about the plans.
Chris Chapman, owner of Chapman and Sons butchers, which has been in the village since 1908, told the Mirror: "I am very opposed to it. It won't do our trade any good.
"It's putting pressure on independent retailers.
"If we want to keep the type of village Tadworth is, it needs a variety of shops.
"If we don't keep the shops that people visit on a regular basis, we lose the heart of the village, nothing that generates vibrancy."
He added: "I don't think there's a need for another convenience store, it won't benefit Tadworth as a whole."
Lynne Blackford, owner of Number 24 furniture shop, said: "I wouldn't want to see shops affected by it, they're part of the character of Tadworth."
But she added it would be a "good use of space".
Ronnie Griffiths, manager of Harringtons dry cleaners, raised concerns about early morning deliveries, which could affect residents living behind the store in Willowbank Gardens. Sainsbury's says there would be only two depot deliveries made each day, with additional deliveries of bread, milk, newspapers and cigarettes.
The lack of parking in the village was also a cause for concern for some. Sainsbury's has planned for 14 spaces at the site and says most people would walk or cycle to the shop.
Mr Chapman said: "They're dreaming if they say there wouldn't be more vehicles coming.
"People won't walk or cycle to do their shopping, they would bring their cars."
A spokesman said the new store "would support and add to the vibrancy of local shops" by offering somewhere for residents to "top up their food shopping".
It is likely to trade from 7am to 11pm, rather than 24 hours.
Mark Rush, Sainsbury's region acquisitions manager, said: "We are delighted to confirm our plans for a new Local store, alongside another commercial use.
"The site, with its good pedestrian and cycle links to the local centre, is well situated to help to increase footfall for the benefit of existing traders as well as delivering investment and new jobs to the area."