Ledbury Town Council has backed plans for a DIY store, garden centre and car parking on the Lower Road Trading Estate.
Planning permission for the £3.5m development is being sought by Pettifer Estates Limited.
Coun Peter Watts, chairman of the town's planning and economic development committee, said: "It will bring in business and won't affect local traders."
The final decision on planning permission lies with Herefordshire Council.
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