A report has warned that two major supermarkets will suffer significant falls in trade if a new Lidl is built in North Shields.
The budget firm wants to open a store in Rake Lane, on the site of the former NHS flats near North Tyneside General Hospital.
Despite objections, North Tyneside Council officers have recommended the plans for approval.
And a report set to go before the council's planning committee has revealed that the store could end up hitting both Aldi and Morrisons in the pocket.
Both Morrisons, at Hillheads, and the Foxhunters branch of Aldi would see a 23% drop in trade.
However, with neither store in a town or city centre, the impact on takings doesn't have to be factored into the planning decision.
The impact to the centre of North Shields does though.
Officials estimate a 2.86% trade diversion as a result of Lidl opening, which would be primarily from the Asda store in the town centre, with the impact on smaller local shops calculated to be a drop of 0.19%
"The impact assessment does not consider the proposed development to have a significant adverse impact on the vitality or viability of the centres studied," adds the report.
And councillors are set to approve the development at a virtual meeting on September 1.
That recommendation follows a public consultation where letters of support for the site heavily outweighed objections.
While 13 objectors raised concerns over issues such as extra traffic, there were 29 letters backing what one local called a "great addition" to the area.
Others welcome the 40 new jobs that would be created, ranging from cashiers to admin roles.
And despite concerns over increased traffic due to the site, the firm previously assured residents that there be "minimal impact on the local highway network".
The firm has enjoyed an explosion in popularity in recent years. However, it was recently pipped into second place by rival Aldi, which took the tile of Britain's cheapest supermarket.
