Business leaders have expressed concerns about plans to turn a town pub into a supermarket.
The owner of The Maltings, in Loughborough, said it was seeking alternative uses as the site struggled to attract punters.
Earlier this year, Central England Co-op received planning consent to build a convenience store on the car park of the edge-of-town pub.
However, owner Everards is now looking at closing the pub, in Knightthorpe Road, Thorpe Acre, and converting the whole site into a supermarket
A spokeswoman said: "We have carried out a further review of the pub and its potential for long term sustainability. This has resulted in us considering some further options for the site including conversion to a supermarket, however these are not yet firm plans."
Everards blamed the poor performance on the pub's large size, tough competition, changing social habits and the uncertain economic climate.
David Pagett-Wright is chairman of Loughborough Business Improvement District and a member of Loughborough Chamber of Trade.
"The market rules where the demand is, so if a business wants to come in and supply it, then that's fine, subject to the proper planning procedures," he said. "I'm just concerned about it detracting from the town centre."
Surinder Poonian, owner of the Spar store in Old Ashby Road, Thorpe Acre, did not think a new supermarket would affect his business, but questioned the need for another major store in the town.
"We've already got a Morrisons and Tesco nearby," he said.
The Everards spokeswoman said: "Everards is passionate about and committed to pubs, investing in and supporting licensees to run successful, individual and profitable pubs throughout the East Midlands.
"Since 2007, when lots of pubs have been closing we have been acquiring pubs, 30 in all. There are instances, however, when the location, competition or sheer size of the pub does not make it sustainable for the future."
A spokeswoman for Central England Co-op said: "We can confirm we have obtained planning permission to build a convenience store on the car park at The Maltings public house on Knightthorpe Road, Loughborough. We are in currently in discussions regarding The Maltings site and it is too early to confirm any further plans."
Everards, whose headquarters is next to Fosse Park, Braunstone, has owned The Maltings since 1973. The pub, which employs three people, is one of more than 175 owned by Everards across the Midlands.
Meanwhile, there was hope the Jack O'Lantern pub, on the corner of Nottingham Road and Clarence Street, Loughborough, which has been closed for a number of weeks, could reopen in the new year after changing ownership.
