Traders have expressed anger after being given three months to make way for a £300m shopping and entertainment centre in the Black Country.
The council said the scheme will help move the city forward
Wolverhampton City Council has been granted a compulsory purchase order for 72,000 square metres of land to build the Summer Row development.
Cafe owner, Hilda Duffy, who is among up to 200 traders affected, said she was "devastated".
The council said traders who did not want to move would be compensated.
The government gave the go-ahead on Tuesday for the compulsory purchase order in the south of the city and building work is set to begin within months.
Summer Row will include a Debenhams department store, 85 other shops, a cinema and other leisure facilities. An underground car park and new homes are also part of the scheme.
'Nowhere to go'
The council said the "£300m regeneration scheme" would "transform the city skyline" and be an economic boost to the city, helping it compete with places such as Birmingham.
Cafe owner Hilda Duffy said her livelihood would be affected
However, Ms Duffy said she was worried about losing her livelihood.
"I have built the business up and we have got nowhere else to go," she said.
Steve Boyes, from the council, said it had been trying to "maintain dialogue throughout this process" with traders.
He said those concerned should go to surgeries at the city's civic centre on 21 and 22 February where advice on relocating and other practical help would be offered.
He added that the compulsory purchase order provided statutory provision for traders to be compensated.