TESCO has secured permission to open up an express store in Barbourne - despite opposition due to traffic fears and the impact on other traders.
The supermarket giant has been allowed to open up at the former Esso petrol station site in Barbourne Road, creating 20 new jobs.
The food store wants to create a three-storey building with a Tesco Express on the ground floor and 12 apartments on the upper levels above it, ten of which will be two-bed and two one-bed.
It was backed by Worcester City Council's planning committee despite Tesco being turned down for an express store on the same site six years ago.
But back in April a Sainsbury's Local was allowed to open at the former Intoto furniture store at the junction of St George’s Lane North, and on top of that independent planning inspectors have shifted towards allowing mini convenience stores the green light.
The committee gave the Tesco approval after saying it would bring a neglected Worcester site on a key gateway back to life.
Three objections had been handed in by nearby householders who are part of the St George's Square Residents Association, saying it would increase traffic and damage the independent traders nearby.
A report before the committee said it was "not for the planning system to control competition between businesses", suggesting that if the plans were refused Tesco could appeal.
Some councillors said the project would help restore a flattened site into a far better state.
Cllr Roger Knight said: "There is a concern over car parking, but on the other hand it will be good to get this empty site back to some kind of operational form."
Under an agreement with the store, it will be required to hand over £8,000 to funds for nearby Northwick Manor Primary School and Tudor Grange Academy, and £10,000 to play facilities in the area.
St George's Residents Association had submitted an objection saying it would have a "detrimental affect on an already critical traffic situation".
But it was passed by the committee, with planning officers saying there will be 15 parking spaces provided on-site.
Simon Petar, corporate affairs manager at Tesco, says it will "create local jobs, homes and more choice" in the city.