The People's Supermarket is preparing to open a second store, in Hackney, East London.

The co-operative, which recently joined Nisa, is to assess whether the community of Homerton would support a local store. Hackney Council has commissioned TPS to undertake the public consultation exercise.

Three potential sites are under consideration.

Kate Bull, CEO of The People's Supermarket, will lead the study and present the findings to the council, alongside a business plan and environmental and social impact assessment.

"This is a great opportunity for us to further prove that our business model works," she said. "Social enterprises have been mistaken for operating only in the voluntary sector, but it is a way of doing business that goes much wider, across all industries and sectors."

The People's Supermarket opened in Holborn in summer 2010. It now has 20 paid staff, who are helped by more than 1,000 members, serving over 6,000 customers a week.

In addition to Nisa, the Holborn store sources from over 30 suppliers. Its aim is to source 30% of its stock from local suppliers, although such a target was challenging in London, Bull said. "Nisa provides us with the well-known brands which customers demand, while also allowing total flexibility for us to source locally," she added.

Councillor Guy Nicholson, Cabinet Member for Regeneration for Hackney Council, said: "The People's Supermarket will bring economic growth and an increased sense of community to the area."