LIDL remains "committed" to building a supermarket on the site of the former Good Companions pub, despite having withdrawn its planning application.
The German supermarket chain withdrew the plan for the Sanderstead site earlier this month after the council indicated it would be rejected on design grounds.
A company spokesman said on Tuesday: "During the last few weeks Lidl have made some significant improvements to the scheme to address comments from both the council and local residents.
"We are still committed to bringing a Lidl store to the area and look forward to this next stage of consultation."
Local residents had strongly objected to the plans for the site in Limpsfield Road since they emerged last July.
Campaigners said the supermarket was not needed in the area and would bring too much traffic to a largely residential area.
Campaigner Alex Anderson, who lives near the site, said: "It has slowed them down and I suppose that's all we're really doing.
"I am hoping, I don't know, that they forget about it or something."
Ward councillor Yvette Hopley confirmed the council indicated it would reject the plans.
She added: "I am delighted [Lidl] are thinking about residents' concerns and I really hope they take on board what we have been saying.
"It's the entrance point to London so it needs to be a good design.
"It does not need to be a pastiche of what is already there. But we don't want a tin shed; all they did was add a few bricks and change the shape of the entrance.
"They can do it if they want to do it; in a number of other places they have nice buildings."
Cllr Hopley added there was no pressing need for another supermarket in the area.
She said: "It is probably going to be a different type of supermarket to Waitrose, but we do already have a Co-op.
"Lidl and Aldi are growing faster than other supermarkets because of all this austerity."