traders cheered as Sainsbury's plans for a store in Tadworth were thrown out by councillors.
The supermarket wanted to take over the Mini dealership in The Avenue – but its threat to the viability of independent shops was considered too great.
Gillian Hein, of Tadworth and Walton Residents' Association, told the borough council's planning committee last Wednesday: "The future of Tadworth as a strong community depends on a good range of shops and services. The very idea the shops will actually benefit has no foundation."
Sainsbury's wanted to convert the site into a convenience store and 14 parking spaces. It also planned to lease an outbuilding to provide an MOT centre. It argued that independent shops will still thrive, due to customer loyalty, and the convenience store would offer "top-up" shopping.
But the chain admitted in its application that its opening would cost existing traders £450,000 a year in lost turnover, while turning over £3 million annually themselves.
Mrs Hein said: "We understand the premises are only available on a 15-year lease. Once the centre has been decimated, if the lease is terminated, there will be no shops or village heart."
Gary Morris, representing Sainsbury's, told councillors: "This proposal will bring the site back to beneficial use, there will be 20 to 25 more jobs for the area, and reduce reliance on large stores further afield."
But councillors were strongly in favour of supporting Tadworth's small businesses, which include a butchers, bakery, greengrocers, post office and a range of other independent shops.
Councillor Rachel Turner said: "There's a real danger that several of these shops will close and make staff redundant if Sainsbury's got planning permission."
Clr Sam Walsh rubbished Sainsbury's claim that customers will continue their shopping by walking to the centre of Tadworth, saying: "Shoppers shop for convenience, not exercise. They will shop then go away. The store is dislocated from the centre. The deflection of trade from other shops is quite significant."
The committee voted unanimously against the plans.
A separate application for Sainsbury's to install signage was approved as there were no valid grounds for refusal. A spokesman said: "We are disappointed with the decision, particularly in light of the officer's recommendation for approval. We will now review the committee's decision and consider our options. We will update the community shortly on our next steps."
