The building work is currently taking place on a piece of park land within the shopping complex opposite the new swimming pool on Mostyn Street, and will involve constructing an additional shopping unit and relocating the existing security office.

According to minutes from a Conwy County Borough Council planning meeting in December 2007, it was suggested that the proposal be turned down after members of the Planning Committee decided the loss of public open space was "unacceptable", and that "the land was of more value as open space with public benefit rather than another retail unit".

But during a meeting in January, conditional planning permission was granted following a visit to the site after the applicant offered "a sizeable contribution to enhance town centre car parking".

Michael Learmond, regional organiser for the Federation of Small Businesses (FSB) for North Wales, is concerned that this expansion at Parc Llandudno could seriously affect the town.

He said: "A new unit being built is an extra nail in the coffin of Llandudno. We are in a situation where the local authority seems to be keen on attracting national retailers in the belief they will help Llandudno's local economy. If you spend money in a local shop, the money stays with Llandudno.

"North Wales relies on tourism. To have the same high street as everywhere else where every one has the same shops removes one of the reasons to go to a tourist destination. People like to poke around local shops. By the time people work out that the towns are disappearing it will be too late."

According to Mr Learmond, 11 independent businesses in Llandudno have closed over the last year.

"If you talk to local retailers, there has been an immediate drop in trade since Parc Llandudno opened," added Mr Learmond. "They are not frightened of competition, they just want a fair crack at the whip. The local authority needs to value and cherish their high street."

Matthew Beddow of Anderson Harkins Limited - managing agents for Parc Llandudno - said he could not confirm who will be moving in to the new unit, but stated that the building was fully compliant with the planning permission and should be completed by next year.