Opinion remains divided over the impact of a Tesco Express store on local businesses nearly a year after it first opened.

Shopkeepers and residents feared the new branch in South Woodford High Road, would put small, independent stores out of business when it began trading in January 2009.

At least one shop, the Wine Rack, has shut since then, and several other businesses have reported devastating falls in revenue during the past year - but others say Tesco has been good for the area and brought in extra customers.

Frank Cruder, chairman of Chelmsford and Derby Road Neighbourhood Watch, said the shop has caused a divide between two parts of the High Road.

He said: "The shops opposite Tesco seem to have benefitted more than on the stretch between Derby Road and Chelmsford Road.

"Tesco is handy, especially for older people who can't get down to Waitrose and Sainsbury's, but it has had a negative impact for alot of the busineses here."

Tajinder Sagoo, who has managed South Woodford News for more than 27 years, said the past twelve months have been among the toughest he can remember.

He said: "I have lost around £200 a day in trade - roughly £1,200 a week.

"Our passing trade has really died down. Tesco has really killed my Sunday trade.

"I was talking to the man who runs the mini market down the road and he says his trade has fallen too."

Mr Sagoo has fought back by offering lower prices on a range of goods than the supermarket in order to compete for customers.

He said: "We are cheaper than them for eggs, milk, sugar and all sorts of other things. We also offer a more personal service for people."

Victoria Tapley, manager of Victoria & Albert hairdressers, said the store was used by many local people.

She said: "Lots of people said they were going to boycott it when they first heard it was going to open, but they use it all the time now.

"It's handy for any bits that people need."

Tim McDonald, of Derby Road - who regularly shops at the store - said: "Tesco and the new Belgique cafe have been good for this stretch of the High Road.

"We all try and shop at independent shops if we can, but Tesco has most of the things you need all in one place.

"There really wasn't much here before they came along."

Tesco has yet to comment.