TESCO is aiming to open its third store within one square mile in the Capital, sparking new "Tescoland" protests from traders and community leaders.
The supermarket chain has targeted a site on Picardy Place for a new Tesco Express and lodged a planning application with the city council.
It would be the third store in the immediate area, prompting fears the supermarket chain is swamping the ne
ighbourhood.
Similar fears sparked a concerted, but ultimately unsuccessful, protest against so-called "Tescoland" plans for a third store within two square miles in Craiglockhart two years ago.
A leaflet campaign has been mounted against the move amid fears it will damage the strong mix of independent shops in the area.
Tesco is in talks with the owners of the building which houses the Reid Bed Store, although the bed shop says it has no plans to move.
Local traders fear the extra competition, at a time when shops are suffering the twin effects of the recession and the tram works, could force some out of business.
They argue Tesco already dominates the area with an Express store on nearby Leith Walk and a superstore on Broughton Road.
Sharon Nugent, owner of the Narcissus flower shop on Broughton Street, said: "Broughton Street is a nice place to go shopping, with lots of individual shops.
"Most of them would lose some business if Tesco opened. However, in my experience, the council does not do much to help local businesses. I do not know if they will be concerned about us in this case."
Ben Raffles, assistant manager of Real Foods, on Broughton Street, stressed the area thrives on the number of independent shops.
He said: "I just think this end of town has suffered enough recently and there are already two Tescos nearby."
Leaflets circulating in the area are urging people to object to the planning application before next Friday's deadline.
They cite concerns about the traffic disruption and increased deliveries disturbing neighbours. Business competition is not considered a valid ground for objecting to a planning application.
Leith Walk councillor Angela Blacklock said she was concerned about the impact on the local independent shops.
She added: "It would be terrible to see this disappear for the sake of a supermarket."
A Tesco spokesman confirmed it was "in discussions with the landlord" of the building.
No-one at the Reid Bed Store was able to say how long it still had to run on its lease on the property, but a spokesman said: "Tesco approached us a while ago, but as far as we're concerned we are not closing.
"We have had no further discussions with them."
