Neighbours and shopkeepers are split over plans to build a superstore on the Worthing College site in a £20 million deal.
The deal between Asda and Worthing College, in Bolsover Road, would also create a modern "super-school" - but it depends on planning permission being granted.
Nearby businesses fear the scheme could damage their trade if Asda is allowed to open on the site in Bolsover Road, Worthing.
Residents whose houses back on to the site fear the store could devalue their homes and add to congestion in the streets.
But some residents backed the scheme and said a cut-price superstore would make shopping more convenient.
Tony Oldfield, who owns Strand Fruit Stores on The Strand, said: "Any further retail development in this area will kill the small businesses here.
"They talk about the jobs that will be created by the supermarket opening, but what about the jobs that will be lost?"
Chris White, manager of J.Knight Butchers, was concerned about increased competition but felt his prize-winning sausages would continue to pull in customers.
He said: "It might bring people in. There are occasions when I know of a butcher doing well out of a situation like this."
Liz Silverthorne, who has lived in Bolsover Road for 32 years, was worried the development would devalue her house.
She said: "There's got to be a way we can stop this."
Mother-of-four Tina Deanus, of The Strand, said: "It's going to be good for my teenage kids.
"It's cheap, it will be handy and there's a lot of choice. We need more round here. My 19-year-old daughter will be able to apply for a job and I might even apply."
Nigel Cooper, owner of Strandways Hardware, said: "We're not really frightened of multiple stores. We can get people in here. We will make the most of the opportunity."
College principal John Robinson said: "There is some evidence to suggest properties may rise in value, not depreciate.
"As for local businesses being affected, Asda is trying to develop a strategy to work alongside them rather than being in competition."
He said meetings would be held to discuss residents' concerns and there would be an exhibition of the plans at the college.
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