A planning inspector ruled that the supermarket's application, its fifth in five years, would not have an adverse impact on shops in the area.
Campaigner Adrian Ramsay said: "I'm disappointed by this decision and a process that allows a remote planning officer from outside the area to overturn the democratic decision of local councillors and the wishes of hundreds of local residents."
Norfolk retailer Nigel Dowdney added: "The majority of local people and 100% of local traders were against this."
Tesco said: "We look forward to creating jobs, serving local people and becoming part of the community."
But Dowdney responded: "Tesco makes no attempt to be part of the community, and the net effect will be a loss of jobs."