Shops, employment and the countryside in England all flourish if plans for superstores are refused, a report says.
The findings by the Campaign to Protect Rural England (CPRE) and the Plunkett Foundation are based on the area around Saxmundham in East Suffolk.
Planning permission for an outside town superstore there was refused in 1997.
The report found greengrocers, butchers and bakers have since prospered but a retailers' organisation cautioned against drawing sweeping conclusions.
The British Retail Consortium, which represents stores of all sizes, said consumers are influenced by a range of factors.
"We are delighted that these shops seem to be thriving, but the link between this and the rejection of planning permission is far from clear," a spokesman said.
"It shows that there is a viable alternative to being spoon-fed by the supermarkets"
The report's authors argue the benefits of rejecting the supermarket included small stores doing well, an increase in farm shops and markets, more firms adding choice and value and local stores helping to keep communities alive.
It also ensured local countryside was well managed and served the community.
In the area around Saxmundham, the number of food suppliers rose from 300, in 1997, to 370.
And the number of shops - 81 - had remained constant, bucking the national trend.
Celebrity endorsement
CPRE head of rural policy Tom Oliver said the report's findings were "a striking success story for local foods".
"It shows that there is a viable alternative to being spoon-fed by the supermarkets," he said.
Local, regional and national government must support "a future for local food suppliers, independent stores, their communities and landscapes", he added.
"If we want, they can thrive alongside national and global businesses.
"Or we can do nothing and watch them die."
The report, endorsed by celebrity chefs including Gordon Ramsay and Hugh Fearnley-Whittingstall, calls for action to stop the spread of supermarkets into convenience stores.
It also urges supermarket chains to stock and promote more local foods.
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