Morrisons claims it could lose out on £2m a year in sales if Asda is given the go-ahead

Planning agent Cushman and Wakefield said the impact of an Asda store along the A29 Shripney Road would greatly harm the town's central shopping area.

The company puts the damage to Morrisons' business as 11.6 per cent of its current trading.

This equals some 1.87m based on separate figures supplied by Morrisons' planning agent, in its objection to Asda, which put the annual turnover from the just over 11,000sq m Bedford Street store at about 17.07m.

Cushman and Wakefield has told Arun District Council in the build-up to the councillors' decision on the Asda plans this afternoon that the proposed store would damage existing town-centre retailers.

The company states: "This trade diversion would have a significant impact on the Morrisons store and lead to a decrease in shopping trips to this existing town-centre store and linked trips of shoppers combining trips to the Morrisons food store with visits to Bognor town centre.

"Overall, the proposal will have a significant harmful impact on the vitality and viability of the town centre."

Cushman and Wakefield, acting for town centre developer St Modwen, continues that the proposal in its Hothampton regeneration scheme of a food store would provide adequate competition for Morrison.

The Observer reported earlier this year the location was being seen as a suitable site for a Marks and Spencer Simply Food outlet.

Allowing the current car park to be partly used for a supermarket would enhance the town centre's appeal, Cushman and Wakefield claims.

This would enable shoppers to combine journeys to several town centre stores. Asda's location, however, would make such journeys unlikely and do nothing to cut car use.

For Morrisons, planning agent Peacock and Smith tells the district council that Asda's proposals are simply wrong.

"This application is contrary to national and local planning policies which seek to promote and enhance and only allow retail developments in out of centre locations where there is a demonstrable need," it states.

Peacock and Smith adds that it is unrealistic for Asda to assume shoppers who go to Chichester will divert to the new store instead.

Chichester's status as a leading shopping destination will always mean many shoppers will head there regardless of the shops in Bognor.

Similarly, residents who live on the eastern edge of the Bognor urban area are still likely to continue to go to Littlehampton.

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