A shopping centre rival to the proposed £50 Rushden Lakes development is formally objecting to the plans.
Corby town centre owners Helical Bar and Corby Council have spoken out in opposition to the scheme, which has pledged to create 1,630 jobs.
They have claimed the development would hurt Corby’s footfall and say town centres should be the focus of development in the north of the county.
Duncan Walker, investment director for Helical Bar, said: “It is 20 miles away, but we are part of a consortium of owners of Wellingborough, Kettering and Northampton shopping centres, and it is going to impact on all of them.
“We should commit everything to our town centres instead of concentrating on out-of-town developments.”
Corby Council deputy leader Mark Pengelly said: “It is going to have an effect on Corby.
“Our research says it is going to take seven per cent of footfall away.
“It is going to be negative for the town. We are linking with Helical Bar and will be raising a formal objection.
“Ourselves and Kettering should be competing, not somewhere else.”
Kettering MP Philip Hollobone has already spoken out against the proposed development of the Skew Bridge site, off the A45.
Speaking in Parliament, he said it would be a “disaster” for other town centres.
But the plans have been welcomed by job centres in Rushden and Wellingborough and Rushden councillors.
The Evening Telegraph contacted LXB Retail Properties, the company behind the development, but nobody was available for comment.