It's over: after four years of waiting and a series of delays to a complicated restoration and extension to a dilapidated 16th-century pub, the Severnside community of Berkeley finally has a new and bigger Co-Op.

But the cutting of the ribbon by Berkeley Mayor Peter Hall on December 5 is already triggering fears for the future of the town's main street, with the former premises now boarded up as the quest begins for a new occupant – subject to restrictions imposed by the food retailer, which owns the property.

The Midcounties Co-operative's brand-new facility is some 300 yards away from the exited address, at number 5, Salter Street. And while both are on the same street, the new location's relative distance from the town centre and away from a cluster of retail sites is stirring fears that the town's retail offer could become fragmented.

One resident who runs a business in the town told Punchline-Gloucester.com: "It is a very impressive result. The new store is a little bigger than the previous one and stock is mostly within covered, refrigerated units. It feels well lit and spacious, but for many older shoppers and those on foot, it is away from the centre and it is going to to shift the focus, which has to be a concern."

However, Joanne Hatton, manager of the One-Stop convenience store and Post Office, close to the former Co-Op at number 15, said that no immediate impact had been experienced by the supermarket's move.

Ms Hatton, who has lived in the the town and worked in retail since 1997, said: "If anything, we've been busier than ever. There is of course the momentum of Christmas to factor in but I'd say that my March next year we will know where we are – the challenges are the cost of living, mortgages having gone up and inflation generally, but despite the Co-Op move, we are still busy!"

The Co-Op's move also lands amid a Town Improvement Plan jointly administered by Berkeley Town Council and Shire Hall. At its latest stage, the plan has hit a bump in the road after the parish moved to pause the project over the issue of whether it is liable to cover the VAT on its intended spend with engineers Atkins Réalis, is resolved.

Back in May, amid a second consultation with residents, the plan revealed a vision to realign the confluence of roads in the town centre, with resurfacing and new zones to create "an attractive town centre with improved road safety and pedestrian accessibility, traffic calming measures and a multifunctional community space".

Ideas floated included a change of priority for traffic on Marybrook and Canonbury Street, a reduction of the speed limit to 20 mph in key areas, changes to parking and additional raised crossing points.

In earlier consultation results, half of the respondents supported installing EV charging points in the town centre, while a clear majority were in favour of measures to cut traffic speeds; 80% said they were keen to find increased parking options in the town, while just over 40% said they would support the provision of open-air café tables in shared space at the the town's centre.

Curently marketed at an undisclosed price by Birmingham agents Johnson Fellows, the former Co-Op address is being offered subject to a restriction on intended use. 

The covenant prevents the address being used as a convenience store or off licence, although the agent adds that the 2,624sqm site has a £9,000 extra income potential from letting out residential accommodation, which currently is vacant.

● The Midcounties Co-operative is a family of businesses, covering more than 230 Co-op food stores across the West Midlands, Oxfordshire, Gloucestershire and Wiltshire. It also trades nationally through its Your Co-op Travel, Your Co-op Childcare, Your Co-op Energy and Your Co-op Broadband and Mobile businesses. The business confirmed that all existing staff from the former store had been transferred to the new location.