FEARS were voiced yesterday that a giant supermarket in the centre of Darlington could have a devastating effect on other businesses.

The Darlington branch of the Federation of Small Businesses said the news that Tesco was in talks to build a store in Feethams, as revealed in The Northern Echo, could signal the end for smaller town centre shops.

Chairman Peter Troy said: "All small businesses suffer from unfair competition from large supermarkets anyway.

"Another supermarket opening in Darlington would undoubtedly increase the pressure on local small retailers."

James Lowman, from the Association of Convenience Stores, said: "The danger is that because of the supermarket's buying power and because of things like big free car parks, they can squeeze out some of the other retailers in the area.

"There are a number of examples of this around the country, including Stalham in Norfolk, where Tesco opened up a town centre store.

"There was increased pressure on smaller traders, such as butchers, and greengrocers, and a number closed down."

The size of the proposed Tesco store in Darlington is not known, but smaller retailers are worried that a hypermarket, selling clothing, homeware and electrical goods, could affect their business.

Andy Atkins, chairman of Grange Road Traders' Association, said: "If you look at larger store formats for Tesco, they are very heavily involved in things like clothing, which could have an impact on smaller shops.

"The issue is: will it draw more people into Darlington, which is a potential positive, or will it simply draw from people who are being provided for by existing retailers."

Not everyone felt a Tesco in the town centre would have a detrimental effect on the local economy.

Retail expert Anthony Platts, from Wise Speke stockbrokers, said the store was likely to benefit town centre trade.

"There will be some retail outfits that Tesco will take custom from but on the other hand the store will bring people into the centre.

"People who may have stopped going to Darlington and now shop in places like Stockton and Middlesbrough, could return."

Darlington Market Traders' Association said it welcomed the store plan.

Vice-chairman Robin Blair said: "I know it's in opposition to us but we have already got a lot of competition and we are still here.

"Hopefully, people will park there and will have a wander into the town."

Anthony Frieze, the Conservative's prospective parliamentary candidate for Darlington, said: "It's competition and it can only reinforce Darlington as a major market town."