The long-awaited store will be built in Andersons Bay Rd, on the former Smiths City site, owned by Otago Land Group, subject to council approval.
A Dunedin City Council land use consent application by Otago Land Group and Home Centre Properties said 87 car parks would service the store, four more than the site has at present.
Car park demand was predicted to peak at 67 vehicles during the week, and 116 vehicles at the weekend, the application said.
"Given the minimum car parking requirements have been removed from [council regulations], it is considered that there are no car parking number-related non-compliances".
Earlier plans for an underground car park at the site had been scrapped, the application said.
"An undercroft car parking scheme is no longer proposed, limiting the extent of light spill compared to what was initially discussed with council."
The full-range store will employ more than 100 people, and work on the build will start once approval is obtained.
Domino’s Pizza Andersons Bay manager Avtar Singh said parking could be a problem, as Kmart customers who could not find a park elsewhere might use parks in the Dominos block instead.
"In rush time, it will be harder for the customer to find parking."
However, he believed the new store would have a positive impact.
"People are going to do their shopping there, and then they’re going to come and buy our pizzas from us."
Wendy’s Hamburgers manager Ashish Ashish while the lack of new parking facilities could pose a problem, the busier the area was, the better.
The building on the future Kmart site had been the source of "a few" customers, but was currently empty.
An employee at The Cheesecake Shop Dunedin, who did not wish to be named, said the store would be good for business because it would attract customers from around Dunedin to the area.
The employee was not concerned about the possibility of a parking shortage because customers tended to spend just a few minutes in store, so parking turnaround was quick.
Kmart did not comment on whether the parking situation was a concern.
Minimum car parking provisions were removed from the city council’s second generation district plan earlier this year, with the exception of mobility parking.
The change was required by the National Policy Statement on Urban Development 2020, intended to enable more housing and commercial developments to be built.