A multi-million pound extension planned for the Quedam Shopping Centre will include a supermarket.
Proposals by centre owners UBS will see a major supermarket chain take up a new flagship store, and bigger shops to draw in major high street names.
The global financial services firm wants to extend the centre to include the Vincent Car Centre site in Market Street.
But the scheme comes as a potential blow to Yeovil Town Football Club’s supermarket plans at Huish Park.
UBS has officially objected to the Glovers’ plans stating that if the Huish Park store goes ahead, its own redevelopment scheme will be unviable.
The banking firm argues that their own proposals will boost Yeovil town centre, while the Glovers’ plans will see 3,400 fewer shopping trips in the town by 2016 with the loss of £6.1m spending.
In planning documents, a UBS planning consultant said: “UBS’ emerging proposals allow for more than simply a food store; they make provision for a sizeable increase of shop units of a scale and dimension to attract national multiple stores that UBS are presently unable to accommodate within the existing Quedam Centre.
“As retailer requirements have evolved, many of the existing shop units are now regarded as too small, and as a consequence, retailers such as Next have sought occupancy beyond the town centre.
“The redevelopment of Vincent’s yard presents an opportunity to meet this latent demand.”
The statement added: “Were the Vincent’s garage proposals not to proceed, this would clearly be a significant loss of investment in the Quedam centre and Yeovil town centre, would undermine further the performance of the Quedam centre and Yeovil town centre as a whole, and in turn, retailer and customer confidence.”
The firm said Yeovil was losing out to other shopping destinations in the region and was keen to rectify it.
Yeovil Town FC wants planning permission to build a supermarket on training pitches next to the club’s Huish Park stadium.
Its scheme would generate around £5m which would be used to build a new stand at the Copse Road end of the stadium and further improvements.
But the plans have suffered blow after blow with town and parish councils recommending refusal.
There are concerns over the impact on the roads around Houndstone and complications over legal restrictions on the land.
The football club also needs to fund and supply replacement recreation ground for public use.
A decision will be taken by South Somerset District Council’s regulation committee as the authority owns some covenants on the site.