The owners of holiday flats in Scarborough say they will go out of business if a new Tesco supermarket is built in the seaside resort.
A petition has been started over plans for the store in the town centre.
Sharon Witty said her holiday flats business on Columbus Ravine would be hit because they would lose an "exceptional large amount of parking".
Tesco said it was in consultation with the community and the plans would boost the local economy.
Tesco wants to replace its existing Westwood store with a larger one on the Dean Road site.
But there are concerns that will impact on businesses and result in traffic problems.
Ms Witty said: "If our visitors can't park then they are not going to come and stop with us therefore we will actually go out of business."
Matt Magee, Tesco's regional corporate affairs manager, said the majority of people were in favour of the new store.
"During our public exhibition we were encouraged with the level of support that we received as 70% of feedback forms were in favour of the plans."
He said the planned new store would create 350 new jobs and regenerate a part of the town and that discussions with residents would continue throughout the planning process.