Plans for a £6.4million supermarket in Castle Douglas have been recommended for refusal.
Aldi wants to develop a site on Oakwell Road, creating as many as 35 jobs.
But officials have recommended councillors reject the proposal when the planning committee meets on Wednesday as they fear the store would have an “adverse impact” on existing businesses.
A spokesman for Aldi said: “Despite overwhelming public support for our proposals, we are disappointed and surprised that the application has been recommended for refusal by the planning department.
“We remain confident, however, that the planning application is supported by a very robust planning case and, coupled with the overwhelming level of public support for the proposals, we look forward to presenting our case to councillors at next week’s committee meeting.”
The firm claims that more than 90 per cent of people who responded to a consultation were in favour of the development which would make a “positive contribution” to the community by reducing the distance people had to travel for their shopping, cheaper goods and more choice.
In his report for the meeting, case officer Andrew Robinson says it is “clear” from an independent retail assessment that the proposal would have “a significant adverse impact on the vitality and viability of Castle Douglas town centre”.
However, Gillian Warden, who runs In House Chocolates in King Street, disagrees.
She said: “A lot of customers we get come from Dumfries – they leave a town with big supermarkets to use the private businesses in the street.
“I know a lot of people that go to Dumfries or Newton Stewart, who would save money not having to travel. If they’re going to save on fuel then maybe they’ll use the street.
“I think it would be a big positive for the town. I haven’t heard many people against it.”
Castle Douglas is currently served by two supermarkets – Tesco and the Co-op. The latter was recommended for approval when it went before councillors in 2005.
Mr Robinson described King Street as a “vibrant, healthy and attractive town centre, comprising a good range of uses with low level vacancies”.
He accepted the potential benefit to the town the investments and jobs would bring but planning policy favoured a “town centre first” principle.
Mr Robinson recommended rejection of the application even though he felt the benefits would not “outweigh the harm to the town centre”.
A report for the meeting shows there have been 20 submissions of support and five objections.
The plans also have the backing of Castle Douglas Community Council.
Its secretary, Kelly Patterson said: “Most of my fellow community councillors were in favour of it coming, there were no objections.
“We are more than aware of the rising costs, it is hard times for everybody.
“The Stewartry has the most expensive shopping basket for the area.”
Councillor Iain Howie asked for the application to be decided at committee.
He said he could not comment on the recommendation as he is on the committee but encouraged people to express their feelings to elected members.
Wednesday’s meeting also includes a proposal to allow food to be sold from a unit at Cuckoo Bridge in Dumfries which is recommended for approval.
News that the Aldi development is facing rejection has sparked an angry backlash on social media.
Resident James Bell has set up an online petition for people to show their support. It can be found at www.petitions.net/dumfries_and_galloway_planners_are_wrong_to_recommend_against_an_aldi_in_castle_douglas
