Plans for another new Sainsbury’s in Hackney – this time next door to the fashionable Broadway Market – has sparked concern for the future of nearby independent traders.

Retail bosses want to open a new Sainsbury’s Local on the site of an old shoe factory in Mare Street, south Hackney.

They have applied to Hackney Council for permission to sell alcohol, raising alarm among traders and residents keen to protect Broadway Market’s existing grocery shops and Saturday stalls.

Proposals for a Sainsbury’s supermarket have already caused outrage in Stoke Newington with protesters taking to the streets dressed as zombies. And the latest plans appear to be causing similar controversy among residents and traders.

Stephen Selby, executive member of Broadway Market Traders’ and Residents’ Association, said: “Any further intrusion such as the proposed store in Mare Street will be counter-productive to local economics.”

And Andrew Veitch of Broadway Market Projects said the store would have a “serious impact” on the street and raised concerns about job losses.

Although Broadway Market has become a popular weekend haunt for coffee, food and fashion-lovers, it was once an ailing fruit and vegetables market.

Andrew Boff, a Conservative member of the London Assembly, said: “There are five stores on Broadway Market who have stuck with it for many years contributing to the growth in popularity of the street. Their reward will be to have that success put at risk.”

A Sainsbury’s spokesman said: “We believe the shop will become a positive addition in the area and will compliment the other shops on Broadway Market, which provide a different offer.

“Our experience shows that Local stores can increase the number of people who shop locally improving choice, value and availability of good food to residents who would otherwise have to travel further afield.”

Sainsbury’s are to consult residents on the plans.