Councillors insisted the store close at 10pm, rather than 11pm as requested, and that a pedestrian crossing be installed.
The store will go next to the Claregate Pub in Codsall Road, Wolverhampton, on land forming part of its car park. Pub owner Marston's Brewery is planning to give the pub a new look as part of the development. Planners have ruled the supermarket can only be built if the crossing is installed first.
Two petitions, one with 255 signatures and the other with 83, were submitted against the plans along with 89 letters of objection, including one from Wolverhampton South West Tory MP Paul Uppal.
Concerns were raised about the quality of the design and the impact on other businesses.
Jim Mayer, of Glassford Drive, who formed the group Residents Against Marston's Proposals, said: "Lorries will be delivering at different times which means we can expect a busier car park.
"It is an accident waiting to happen."
Michael Robson, agent for Marston's, said the supermarket would only be open when the pub was serving and that it would not lead to any extra noise or problems.
He added that the flow of customers would help to prevent antisocial behaviour.
But Councillor Jonathan Yardley said: "Local people don't want it.
"This is a pleasant residential area and it will be to its detriment if a supermarket is shoe-horned into the car park."
Councillor Malcolm Gwinnett called for the supermarket's opening hours to be 10pm to reduce disruption to residents while Councillor Wendy Thompson said a crossing should be installed on Codsall Road.
Council officers had initially ruled out insisting on the crossing.
The move will lead to the creation of at least 20 jobs.
Councillors were told the figure related to "full time equivalent" jobs meaning there could be more people employed if they work part time shifts.