RINGWOOD traders say they are largely unfazed by the possibility of a Costco supermarket opening on their doorstep.

As the rumour mill continues to churn with talk of the American retail giant opening an outlet at the old Ringwood market site, Maroondah Council and developer QIC Global Real Estate are staying tightlipped.

At the nearby Plaza Centreway, Gilmour Shoes manager Raynor Singh welcomed the idea. "Why would people from the eastern suburbs travel all the way to the Docklands when they have a Costco right in Ringwood?" she said. "I think it will bring a whole range of people to the area and if anything it will be positive for local businesses."

But another trader, who owns a gift store on the shopping strip and wished not to be named, said he was concerned about small-business owners.

"I've lived in America so I know what all the fuss is about," he said.

"Small food businesses may not be able to compete. But it will also be good to get some competition for big chain stores like Woolworths."

Catherine Levay, manager at Burdines Ladies Wear on Maroondah Highway, said she was not too concerned about losing shoppers.

"I think due to the demographic we cater for our business won't be too affected," she said. "But it will be a great attraction to the area and bring people from all over."

Maroondah Business Association vice-president Milton Toal said the proposed development was in tune with the way the area was heading.

"I think it makes sense to have a development like Costco in the hub that Ringwood is becoming," he said.

"Our focus is predominantly small businesses in the area and if you look at the Costco in the Docklands, I don't think it interferes with the shops in harbour town at all."

Costco spokeswoman Kyla White said the organisation was looking at a number of sites around Australia and had not made a final decision. "Unfortunately at the moment it's a bit up in the air," she said.

"We are still going through the process of speaking to landowners and local councils on where the best location will be."