North Canberra IGA supermarkets are appealing against the ACT Supreme Court's decision earlier this month to allow Giralang shopping centre to go ahead, continuing a long and bitter planning row.

It comes as the ACT government confirmed it is opening a block in Dickson for another big full-line shop next to the existing Woolworths, in addition to a planned Aldi, probably putting further pressure on nearby small supermarkets. Ainslie IGA owner Manuel Xyrakis said the Supreme Court's decision on Giralang effectively extinguished the retail hierarchy, allowing major chains to set up big supermarkets in local centres.

''The flow-on effect will be that Canberra residents will lose neighbouring local centre facilities and small local businesses will be non-existent,'' he said.

Canberra Business Council chief executive Chris Faulks said the ACT government needed to decide whether it saw a future for Canberra's small, locally owned supermarkets.

She said the government needed a policy on whether it wanted large players in local areas, rather than letting it happen slowly by acquisition. ''They haven't articulated what they think the impact on local shops is going to be and how they're going to deal with that,'' she said.

The battle between small local shops and the big supermarkets will continue in the courts.

North Canberra IGA supermarkets believe a developer for Woolworths has side-stepped planning rules to build an over-sized supermarket in Giralang.

It will also argue the Supreme Court was mistaken in not giving them the standing to challenge Planning Minister Simon Corbell's decision to call in and approve the new shops.

Giralang's last supermarket closed in 2004, and subsequent plans for new shops were rejected or challenged until Mr Corbell stepped in last year.

In an unprecedented Supreme Court challenge of the minister's call-in powers, IGAs contended Mr Corbell didn't comply with the Planning and Development Act.

Supreme Court Justice John Burns found that Mr Corbell had acted lawfully and rejected the smaller supermarkets' arguments over a retail hierarchy that distinguishes between small suburban shopping centres and bigger group centres. The Court of Appeal will hear the case early next year.

While Supabarn, which has a supermarket at nearby Kaleen, was not a party to the legal action, spokesman James Koundouris said the size of local centre supermarkets had to be restricted in the Territory Plan if the government wanted a retail hierarchy.

Mr Corbell welcomed the Supreme Court decision, which made it harder for businesses obstructing rivals' expansion plans.

Lawyer Alan Bradbury said a significant issue for the IGAs was the ACT Planning and Land Authority's failure to allow the public to see and comment on an economic impact assessment during consultation for the Giralang shops.

The assessment shows Giralang's new shops would divert millions of dollars from surrounding shopping centres.

Mr Xyrakis said he was also concerned about the impact of the new development in Dickson.

''Dickson is only one kilometre from Ainslie, it will be in direct competition, it's not as though this is an expanding area,'' he said.

Deputy Chief Minister Andrew Barr released for sale the site of the new supermarket in Dickson yesterday.

The development, which has the broad support of Ms Faulks, the ACT Greens and Liberals, will also feature an underground car park and residential apartments above the new stores. It will be built on the car park next to Woolworths at the corner of Antill and Badham streets.

The winning tender will be announced in February.

Mr Barr said there was clearly a need for more supermarket shopping options in the group centre, but efforts would be made to maintain the ''village-like'' atmosphere.

''The experience at the Woolworths … is that it's possibly the busiest in the country at times, the economic studies have shown the turnover at that store possibly even justify four supermarkets in this precinct, so we've gone with the option of another full-line supermarket and an Aldi, to provide competition,'' he said.

Mr Xyrakis said his family hoped customers would keep coming to Ainslie thanks to a $2 million refurbishment of the store, their good quality produce and old-fashioned service.

''[We offer] to carry your groceries to the car, we have a free home delivery service, and we always have customers saying our fruit and veg line is a better quality and our meat is better quality that the chain stores.''