Countdown has bought a significant slice of land to build a new supermarket on the road to Havelock North from Hastings.
The supermarket, which would be on the current Lulu and Max site on Havelock Rd, is intended to service Havelock North.
It is being planned due to feedback Countdown was hearing from residents about a need for a new supermarket in the area.
A spokesperson for Countdown said it was still early days. Resource consent applications had yet to be filed with Hastings District Council.
"We know from feedback that there's demand from customers in Havelock North ... we're keen to develop if we can."
The only supermarket in Havelock North, which has a population of close to 14,000, is a New World on Porter Dr.
Hastings District Councillor Malcolm Dixon said a new supermarket option would be good for Village residents.
He said the current supermarket was built 20 years ago, and no longer adequately serviced what was an expanding community.
The new supermarket would also provide competition, and elderly people, on fixed incomes, needed the ability to shop around.
"Currently one supermarket has got a monopoly."
He said he did not think it would cause too much chaos in the area, despite the road's consistent traffic at peak times.
"It's got more than one access and more than one exit from that particular area.
"It suits both sides of Havelock North, it's on your way in and it doesn't matter of you live to the left hand side or the right hand side of Havelock North, or up on the hill, you can go past it."
He said if residents and businesses in the area requested safety measures, such as traffic lights or a lower speed limit, he would support those.
"If it could happen within the next five years I'd be delighted, and I'm sure everyone else would be.
"I can't see a lot of residents getting up in arms about competition coming to town in the food world."
Owner of Lulu and Max Tessa Flowers-Morrell said she trusted Countdown would give her adequate notice when it planned to develop the site.
At that point she hoped to buy land and build a new after-school care centre.
She said having shopped at the Havelock North New World, she felt the village needed a new supermarket.
Havelock New World shopper Lorraine Falconer said she welcomed the idea and would not be put off by driving to the outskirts of Hastings to go to a new Countdown.
A council spokesperson said it had not received any consent applications for a new supermarket in the area.
Foodstuffs, the company which owns New World, has been approached for comment.