The Scottish Government has overturned the decision by city planners to reject plans for a new Aldi store at Dundee’s West Pitkerro Industrial Estate.
Concerns had been raised the supermarket would take customers away from shops in the heart of Broughty Ferry.
Councillors also ruled out the move because the site was earmarked for industrial use.
Aldi, which claims 35 jobs will be created, subsequently appealed against the decision.
The appeals department concluded there were “no material considerations which would still justify refusing to grant planning permission”.
Rob Huntley – who was the reporter appointed in the case – determined that the proposed retail development would have only a “modest impact” on other nearby shopping districts.
Mr Huntley listed a number of conditions with which Aldi must comply before work can get under way, including the completion of business units in the northern part of the site, accessibility and sustainable transport options.
A spokesman for Dundee City Council said: “We are studying the details of this decision.”