Submissions lodged with the town council from the Garvey Group, RGData and Greaney's Spar shop in the town expressed concerns over the detrimental impact of locating the new retail unit half a mile from the town centre. Changes in the traffic flow system on Ballybunion road are expected to be introduced in order to facilitate motorists using the new supermarket.

Councillors granted permission for the project, subject to a number of conditions which were outlined in a detailed report.

The applicant for the planning permission was listed as Spinning Wheel Developments Ltd.

Tara Buckley, director general of RGData, the representative body for the independent retail grocery sector in Ireland, said her organisation is "currently reviewing the decision" and will decide shortly whether to lodge an appeal with An Bord Pleanala.

"RGData supports the government's retail planning guidelines and the local development plans which promote sustainable retail development and vibrant town centres.

"International evidence consistently shows that allowing out-of-town and edge-of-town retail development creates counter attractions that damage the viability of town centres. RGData welcomes competition and believes that vacant sites in town centres should be developed."

"It's progress, I suppose, and for that reason it's very hard to stand in the way of it, " said Nick Roberts, who runs a garden centre on Upper Church Street. "I know if I owned a supermarket I'd be more concerned than if I owned, say, a specialist shop.

"At the moment, a lot of people from town shop in the Tesco store in Tralee. So it's worth making the point that while there isn't currently a Tesco store in Listowel, that doesn't necessarily mean that people from here don't buy their groceries in their supermarket.

"Right now Tralee is the focal point, because of the likes of Tesco, for people from all over north Kerry . . . places like Ballybunion and Ballylongford.

"And I'd assume that while local people go to the Tralee store they're probably making purchases in other stores in the town. So it could actually benefit local traders if the new supermarket gets the go ahead."

Local Fianna Fail councillor Ned O'Sullivan said that while he was supporting the rezoning, and would welcome the extra revenue accruing to the council from development levies, he would not be happy to see other stores or satellite shops opening on the site at Curraghtoosane.

Labour councillor David Toomey believes there is broad local support for the decision.

"I know myself from talking to people on the ground . . . they're delighted to see it coming.

"Most of the objections are about the location . . . not the fact that Tesco is opening in Listowel. The fact is there was no site big enough to facilitate a development of that size in the town centre. So we had no choice as far as location was concerned. And the store will still be inside the town boundary."

Cllr Maria Gorman (Fianna Fail) supported the re-zoning but said she wondered if the development would ever go ahead, given that in the past, similar proposed projects in places like Kanturk were thrown out by An Bord Pleanala after a lengthy appeals' process.

A spokesman for Tesco said it would be inappropriate for the company to comment while the proposed development project is going through the planning process.