Research for economic development minister Alan Mclean outlined the benefits of additional competition for the economy and its islanders, 84% of whom favour the arrival of another supermarket.
"Competition will lower prices and costs through increased efficiency and provide more consumer choice," said Mclean.
But the Channel Islands Co-op claimed the analysis was "reworked, regurgitated and totally unbalanced" and gave a misleading picture of the market. "The suggestion we need another supermarket to keep the market competitive and bring down prices for consumers is a complete misnomer," said CEO Jim Hopley. "We're a co-operative as if we're going to be ripping off our customers. The report fails to outline the 3% General Sales Tax on all foods, the fact wage rates are 40% higher than in the UK, or the extortionate building costs. It's overheads like this that impact on consumer prices, not a lack of competition."
A French chain is seen as more likely to enter Jersey than a UK retailer as it would not have to pay GST.
Sainsbury's, Asda and Tesco have all been linked with plans to open on Jersey but denied any moves were imminent.