The council had received several highly critical emails and letters since the store's plight was highlighted by the Otago Peninsula Community Board last week. The store's liquor licence has been referred to the Liquor Licensing Authority, because of a crackdown on dairies having liquor licences, which makes it doubtful the store will be eligible for renewal.
Board chairman John Bellamy warned that without revenue generated by the licence, the store might have to close, and locals would face driving to the city for supplies.
Mr Mechen said rather than criticising the DCC, people should support the store's owner, Yanmin Zhang, by helping his business expand.
The DCC was subject to the "law of the land" like everybody else, and was trying to find a solution to the "frustrating" situation.
The council was advising Mr Zhang on making the dairy more "grocery-oriented".
This was a service to the community through supporting infrastructure, rather than favouring a commercial enterprise.
Being a grocery store rather than a dairy helped ensure the store's viability, as it would be eligible for a liquor licence.
The community needed to shop there if the business expanded; rather than using it for the odd food item, they should try to use it for their main shop.
The store potentially had a large catchment area, Mr Mechen said.
Macandrew Bay Residents' Association chairman Dave Goodman said he was planning a circular drop to ensure people were aware of the threat to the store.
The fact the store was a New Zealand Post centre made it a key part of the community.
A New Zealand Post spokesman confirmed that if the store closed, New Zealand Post would seek another business to take the contract.
Contacted yesterday, Mr Bellamy said liquor licences should be determined by local authorities, not central authorities.
The ageing population meant having services and facilities close to where people lived was becoming increasingly vital, he said.
