Councillors have been accused, by local businesses of 'sacrificing' Dunbar town centre in favour of a discount retail park.
Plans to build a Lidl and B&M stores at DunBear Retail park on the edge of the town were approved by a meeting of the East Lothian 's planning committee despite being told it could impact some town centre shops by up to 27%
And the decision was described by high street giants the Co-op as sending a clear message to any business considering investing in the county's town centres.
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Graeme Laing from the Co-op said the chain had been "surprised and disappointed" when planning officers recommending the plans were given the go ahead.
He told elected members: "Town centres across Scotland are having a really tough time as we emerge out of the pandemic and need our support. They are at the heart of our communities.
"In September last year the Co-op invested £1.5m in its Countess Crescent store.
"This commitment to Dunbar town centre will be undermined by the proposed out of town development and approval of the application would send a pretty clear statement to other town centre businesses, discouraging them from investing in the town centre."
Representatives from Hallhill Developments Ltd and Lidl Great Britain Ltd told the committee that if approved the stores could be operating on the site next year and would create 80 jobs.
They argued that a community consultation had revealed a "clear desire" from the community for more retail options and that it would reduce the number of people travelling from Dunbar to other towns.
They said: "By preventing expenditure leakage from the town and the surrounding area to other parts of East Lothian and Edinburgh it will also keep money in the community."
However the committee also heard from Jo Waddell who took over The Dolphin Inn, in the town centre three years ago turning it into a popular hostel for tourists.
She questioned whether the right introduction to visitors arriving in the east of Scotland was "a retail park off the A1".
She said: "The town centre is being sacrificed for this development."
Jacquie Bell, who raised objections from both Dunbar Community Council and West Barns Community Council to the application with councillors said original consultations on DunBear park had brought forward suggestions of a conservation site such as The Kelpies.
The park is named after a five metre high statue of a bear which was created in honour of Dunbar native John Muir, who created many of American's national parks.
Ms Bell told the committee: "A retail park is the antithesis of what Muir believed in.|"
However council leader Norman Hampshire told the committee that while not everyone welcomed discount stores to the area, it was what the majority of people now wanted.
He said people were travelling to retail outlets in Haddington and North Berwick to use the stores adding: "It is the prices people want to pay and that is why these shops are desirable."
Councillors agreed to add a condition to planning approval which would make the retailers place a sign at the park encouraging people to visit Dunbar town centre during their visit.
The committee voted by eight votes to one to approve the plans.
A separate application for a Starbucks on the same retail site was also approved by seven votes to two.
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