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Heron Foods in Shadsworth has been licensed to sell alcohol despite residents' concerns.
Blackburn and the Darwen Council Licensing Subcommittee heard 99 people sign a petition against the Shadsworth Hub store's request to sell alcohol.
They said it would lead to increased antisocial behavior, crime and litter.
And locals said that with police resources already at the limit, this would make the situation worse.
A resident spokesperson said, "The reason we all objected is that we want to have a residential area without crime.
"It will increase attendance, waste and noise.
"The safety of children is the main concern because many people are already hanging around on the streets drinking alcohol.
"The store is just down the road from kindergarten and elementary school."
But the leaders of Heron Foods told the committee that they would apply a strict protest policy, that alcohol would be kept near the cash desk in a CCTV area and that the company had never had problem in his stores where alcohol could be sold.
And members took note of residents' concerns but decided that there was no important reason to refuse the request.
The decision was made with a chorus of boos of people sitting in the public gallery.
Luke Elford, representative of Heron Foods on behalf of Woods Whur, said, "The premises are a convenience store – it's not a license.
"We are currently selling frozen products and general products and want to add a small section on alcohol.
"We would sell wine, beer and pre-mixed badtails, but there would be no bottles of spirits available.
"Many of our sites already sell alcohol.
"Many claims have been made about the likely impact in terms of licensing goals, but nothing can confirm this.
"Some performances have included an element of protectionism regarding the impact on nearby driver's licenses."
Prior to the meeting, Blackburn MP Kate Hollern had written to council leaders expressing her constituents' concern over proposals to allow Shadsworth's Heron Foods to sell alcohol.
Officials from the Together Housing Association, which operates Shadsworth Hub, also opposed the project.
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