Lidl has made a fresh bid to build on the new Ropemaker Park development in South Road - just two months after the district council threw out its first plan.
In June, planning officers called the 1,093-square metre store 'unjustified' on an out-of-town site earmarked for industrial, rather than retail, use and said Lidl had failed to show there was no alternative site in the town centre.
But Lidl has put the ball back into the district council's court by resubmitting the plan.
Andre van der Westhuizen, acquisitions manager, refuted suggestions the store could be built in the town centre.
He told the Gazette, "We've proved in our retail assessment there aren't any other sites available in the town at the moment.
"Two options are the Aldi site (cattle market] and the Quintin's shopping centre.
"Aldi owns the market site and they've been refused permission. It's nonsensical to think that's an option - they've got the site and it's not available to us.
"As for the Quintin's, there are long-term plans to redevelop it but it's unlikely that would come forward within the next five years.
"There's talks of refurbishment but there's no firm proposal. It's not a site that is available to us.
"There is a clear, clear need for a discount food retailer in Hailsham.
"Around 11 per cent of our trade in Eastbourne comes from Hailsham. We would be clawing back that expenditure loss and that money will be spent in Hailsham rather than Eastbourne."
Mr van der Westhuizen also defended the firm's plans for 51 car parking spaces, four short of the district council's demands.
He said, "The site is in a highly accessible location with a bus stop right outside. It is very close to residential areas. We feel 51 spaces is sufficient for the location."
Town mayor Ian Haffenden dismissed the idea Lidl's store could not be built in the town.
He said, "There are other sites that would be available within five years if you look at the situation inventively.
"There are no fields to build on but the Masterplan shows where possible sites for retail could be created.
"With all the new housing coming into the area, we wouldn't want to give up allocated industrial sites for retail use.
"We also want retail stores in the town centre - not out of town."
One town centre trader has already written to the district council expressing his objection.
David Brown, who owns Special Occasions in the High Street, said, "This could set a precedent for a flood of further retail applications which would be detrimental to the town centre."
Cllr Haffenden agreed and said he hoped the plan would again be turned down.
He said, "It is completely against policy - I have seen little that will change the planning officers' original decision."