Campaigners fighting to save the Port Chalmers New World say they are encouraged by Foodstuffs' reaction to their counterproposal.
A group of five campaigners met Foodstuffs South Island retail operations general manager Alan Malcolmson in Dunedin yesterday morning.
Group spokeswoman Robyn Broughton, of Sawyers Bay, said the hour-long meeting went well, as Mr Malcolmson outlined the supermarket's position, listened to their counterproposal and asked questions.
The meeting ended with Mr Malcolmson agreeing to present the proposal to the Foodstuffs South Island board, before reporting back to the group on Monday.
''So it wasn't a no,'' Mrs Broughton said yesterday.
''It's not something they have done before, but he didn't dismiss it out of hand.''
She would not divulge details of the counterproposal until after hearing from him.
Mr Malcolmson would not comment in detail while consultation with staff continued, but confirmed that a meeting had taken place.
''As part of the overall process, we are meeting with people from the Port Chalmers community to hear their concerns.
''It's important for us to understand the impact any decision we make has on both our staff and the wider community.''
His comments came after it was confirmed last week Foodstuffs planned to withdraw its New World brand from the store next month, replacing it with a Four Square brand, under new owner-operators.
The plan was expected to cost jobs, and residents were worried the higher prices and reduced range of a Four Square would hurt those unable to shop elsewhere, drive away customers and eventually lead to the store's closure.