Plans for a new Morrisons warehouse in Bridgwater which could see 650 jobs created have been approved by Sedgemoor District Council.
The warehouse will be used for food preparation, packaging and storage.
It will be built on the old cellophane factory on Bristol Road.
It is thought that some of the 700 people who lost their jobs when Co-operative closed its nearby distribution centre in August will be employed at the Morrisons warehouse.
Steve Leahy, the chairman of Bridgwater Chamber of Commerce, said: "It's come at a time where you've got one distribution centre closing and the other one opening so really when you're looking at a compensation for new jobs against the old jobs, it's only really taking the place of a lot of those jobs that are going to disappear at the Co-op site.
"But everything's positive - if we didn't have them there we'd be moaning and Morrisons coming to Bridgwater is brilliant."
Conditions of the approval include the extension of an acoustic fence to block out the noise of passing lorries.
Heavy Good Vehicles will also not be allowed to park on residential streets.
The site is part of an £11m redevelopment of that area which will see 2,000 new homes and 3,000 new jobs created.