The Greenmeadows Superette in Manurewa has filed an application with the liquor licencing authority to sell alcohol until 10pm.
More than 100 people have written letters opposing a licence and are threatening to protest outside the store and to boycott it, if one is granted.
One of the residents who objects to the licence, Margaret Clissold, says the Myers Road shop is on the same block as two schools and the sale of alcohol would put students at risk.
"There's about 20 to 30 kids around that shop in the morning. "We don't want drunks hanging around here."
A Manurewa community board member, Colleen Brown, also says the sale of alcohol would put students at risk.
Amit Jador, the son of the store's owner, says he wants to meet members of the community to try and find a compromise.