Supermarket group Tesco is planning to open a shop at Temple Bar in Dublin.

The British multiple has agreed to open in the former ESB building at Fleet Street, according to an objection to plans to open an off-licence in part of the property which is being redeveloped by the Stafford family, best known for their ownership of Lifestyle Sports. The family paid €33m for the site in 2006.

Publican and hotelier Martin Keane, who owns Blooms Hotel and the Oliver St John Gogarty, said he had "great reservations" about the proposal because it "could lead to an increase in on-street drinking in back lanes" in an area that already has "significant problems with anti-social behaviour". He also felt a supermarket in the building would create a negative impression and that a cultural use for the property would be more suitable.

Paul Fitzpatrick of the Morgan Hotel said an off-licence "would potentially create more anti-social behaviour" in the area as well as additional traffic.

Temple Bar's umbrella group for traders said there was already a large number off-licences in the area. However, Dublin City Council granted planning permission for the off-licence in the scheme subject to nine standard conditions.

Tesco has been winning customers since it cut prices to combat the number of people shopping in the North. In the three months to 13 June, its share of the grocery market in the Republic stood at 27.4%, according to figures provided by market research company Kantar Worldpanel.