A Sainsbury’s Local store is expected to open in a few months time in Edinburgh’s New Town after gaining planning permission.

Councillors agreed with recommendations laid out in a report by planners at the City of Edinburgh Council at the planning committee meeting on Wednesday, December 7 and approved applications for the Howe Street property.

Reaction from local businesses has been of disappointment with the owner of a nearby newsagent faced with the prospect of loosing his business after 17 years branding it as ‘a sad day’.

Mohammed Hanif owns News Corner, a few doors down from the location of the new Sainsbury’s Local store. He said: “I may end up losing the business.

“This shop has been here as a newsagents for 60 years, I’ve been working here for 17 years. This is not a good day, it is a sad day for me.

“I’ve got two years left on my lease, I was planning to renew my lease for another 20 years and sell the business. I’ve worked for 17 years and haven’t had a break for 17 years. I was going to take a break for one year but I can’t do that now.

“Nobody is going to want to buy this shop with that lease with a Sainsbury’s just up the road. I might as well shut up the shop, hand the keys back to the letting agent and sit at home rather than struggle here.”

One of the city’s Margiotta convenience stores is located opposite the site of the Sainsbury’s on the corner of Howe Street and Northumberland Street and will be in direct competition with the new shop.

Franco Margiotta, co-director of Margiotta said: “I am disappointed that such a large company will start next to us but that’s business they are perfectly entitled to open there.

“We expect to lose some business but hope it won’t be so bad to close us down. After all the years we’ve been there which is about 15 we hope that we’ve built up enough loyalty but Sainsbury’s is an attractive proposition.

“The new shop might not always be the cheapest though and we should be able to compete with them with alcohol and maybe fruit and veg.”

Sainsbury’s had previously received permission to open a store at the ground floor and basement unit as it already used for an interiors retail business, In House.

The permission granted on Wednesday is for the installation of baking machinery, modifications to the roof of the basement and to fit signage behind the glazed shop front.

As the baking due to take place on site will only cater for products to be sold in that particular store this falls within the remit for a retail unit and therefore change of use planning permission was not required and despite 40 letters of objection and a petition of more than 300 signatures – plans for the store will go ahead.

A spokesperson for Sainsbury’s said: “This is a very vibrant area of Edinburgh and Sainsbury’s are very keen to have additional premises in town.

"The store will create 15 jobs and will allow the shop to remain open as a retail premises and will be a value addition to the area.”