Both Tesco and Sainsbury's are going head-to-head in a bid to win the custom of Dawlish Shoppers.
Tesco wants to build a store on the football pitch at Sandy Lane, while Sainsbury's has now announced it wants to build a store and petrol station on land next to the Shutterton Industrial Estate.
No planning application for the store has yet been submitted. A public consultation event will be held in February.
Campaign group Dawlish Against Developing Sandy Lane (DADS) welcomed the proposal's offer to build on an alternative site.