Sergeant Kevin Davidson, of Mosgiel, said the intersection of Church and Wickliffe Sts was a ''problem''.
Motorists were failing to stop in both directions at the stop signs in Church St.
It felt like the crashes were happening weekly since Countdown Mosgiel opened in Gordon Rd in February, Sgt Davidson said.
''Luckily, so far we haven't had a serious one.''
The stop signs at the intersection were moved from Wickliffe St to Church St about 25 years ago, in a bid to stop motorists speeding past St Mary's School, when it was on the site of the new supermarket.
Mosgiel-Taieri Community Board member Martin Dillon said he had witnessed several crashes and ''near misses'' at the intersection.
Some of the crashed vehicles appeared to be damaged beyond repair, he said.
Often motorists leaving Countdown appeared to be ''in a dream'' and were driving straight through the stop signs.
Safety improvements were needed but he did not want the stop signs to be put back to how they were, because it would transform Church St into a ''race track''.
Ian Norris, who lives in Church St, said he regularly found himself directing traffic after crashes at the intersection.
He thought the intersection would be the ''worst'' in Dunedin for crashes.
Accidents had also happened before the new supermarket opened, he said.
He wanted the Dunedin City Council to try to make the intersection safer.
''It's no good like this - no good.''
Council safety team leader Hjarne Poulsen said the council was aware of issues at the intersection. Traffic surveys and assessments had been completed and the council was preparing to improve road markings at the intersection before the end of July.
