A public inquiry is underway into plans to alter the K Village factory-outlet mall in Kendal, and treble the number of shops.
The K Village centre is a former factory for K Shoes
Some businesses oppose the £38m project because they fear it will damage trade in the town centre.
Almost 300 people in Kendal have objected to plans to demolish the K Village shopping centre and replace it with a factory outlet centre.
The new centre would mean a three-fold increase in shopping floor space and a car park for 533 vehicles.
The Guinea Group, which hopes to triple the size of K Village, says the chance of a bargain will attract more shoppers, to the benefit of every trader in Kendal.
But other businesses, like the Westmorland shopping centre, say shoppers who spend money at the village will not spend time or money in the town centre.
Planning officials at South Lakeland District Council had approved the plans in principle.
The existing K Village factory-shops complex attracts tens of thousands of shoppers a year to a former shoe factory on the edge of Kendal town centre.