The future of a proposed Tesco in Tolworth could be in jeopardy following the competition commission's provisional report on big supermarkets.
Tesco is currently midway through a series of meetings with a working group to revise plans for a store and homes at the former Ministry of Defence site next to Tolworth station.
Tesco owns the site, but the report by the competition commission wants to redress the trend of big supermarkets stockpiling land.
It recommended the introduction of a competition assessment for local councils to consider before granting planning permission.
This would take into account the proposed retailer's position in the local market, and could spell trouble for Tesco's Tolworth hopes because only two miles away Tesco has its 24-hour New Malden store.
The second planning measure proposed would be to allow more competition by reducing "barrier to entry".
A spokeswoman for Tescopoly, a campaign group against the negative impacts of Tesco's behaviour, said: "We'll be waiting to see how it impacts on other similar proposals, but we do feel that the competition test will do little to help local shops or to promote real retail diversity."
Tesco will hold a drop-in session to update residents on the working party process on Wednesday, March 5, between 6pm and 8pm at 142 Tolworth Broadway.
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