Ledbury retailers say they are willing to fight every step of the way to prevent the Lower Road Trading Estate becoming a retail park, following the arrival of the Homebase store this summer.
Len Huff, chairman of the Ledbury Independent Traders Association, said he feared that other major companies could follow Homebase on to the site, and he predicted that, if this happened, Ledbury would be an empty town within five years.
He added: "How many other towns have been sucked dry by retail parks? We are just going to lobby those people who rubber stamp planning applications, such as Hereford-shire Council and if necessary go to the highest authorities. We have to fight for our livelihoods."
The matter will be discussed further at a meeting of LITA at The Feathers Hotel on January 26 from 6pm.
In advance of the meeting, Mr Huff pointed out that car parking charges are to rise in the town centre, under a recent Hereford-shire Council ruling, but Homebase will be able to offer "easy and free car parking" with access off the bypass.
Retailing giant Homebase has taken on a 20-year lease for the £3.5m DIY superstore, owned by Pettifer Estates.
The venue offers 21,000sq ft of floor space in the DIY area, and a 10,000 sq ft garden centre.
Herefordshire Council granted planning permission for the Ledbury store in late July and placed conditions that the superstore would not be able to sell certain goods, to limit the impact on local traders.
LITA has already stated that it will monitor the goods on sale, to ensure that these conditions are met.
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