Tesco has identified a site for a new supermarket in Dawlish after an earlier plan was withdrawn because of local protests.
The retailer revealed it had secured land at the Lady's Mile Holiday Park, days after dropping a plan to build a store on a playing field at Sandy Lane, following strong opposition from residents in the South Devon coastal town.
A Tesco spokesman said: "We know the majority of people would like their own modern foodstore but are aware that Sandy Lane was not a popular location, despite being earmarked for retail development.
"We're confident that the southern end of Lady's Mile is the best available for a small supermarket because it's close to the town centre and within easy walking and cycle distance to major housing developments. We are talking to the local bus company about improving services between the site, residential areas and the town centre."
Lady's Mile Holiday Park owner Alf Jeffery thinks the supermarket will be good for Dawlish. "It will be handy for housing and the main holiday area of Dawlish Warren," he said.
A public consultation will be launched in June, but opponents of the original Sandy Lane proposal still believe the store is not needed.
Sue Haswell, who helped lead the campaign group Dawlish Against Developing Sandy Lane, said: "It doesn't matter where it is - a supermarket will destroy the character of Dawlish."
John Wilkinson, from DARE - Dawlish Against Ruining Everything - said there was concern for the future. "It has been seen in other towns that supermarkets take trade away from local shops," he said.
And Jeremy Knowles, who runs Poppadums health shop in Dawlish, said: "There is a huge groundswell against Tesco.
"Any supermarket will increase traffic - the town doesn't need one and it will force traders to leave."
A new roundabout on Exeter Road would allow access to the new store. A pedestrian crossing and a bicycle route on the west side of Dawlish are also included in the Tesco plan.
Tesco said the store would be half the size of the one at Newton Abbot in South Devon and would include "sustainable" features such as a combined cooling, heat and power system.
Arch rival Sainsbury's plan for a 25,000sq ft store at Shutterton Bridge is pending consideration by Teignbridge Council.
The new Tesco proposal will be shown to residents at a public exhibition, provisionally set for Thursday, June 12, and the following day at the Manor House, Old Town Street.