There's no way of knowing exactly how all their future customers will travel to and from. But there are nurseries everywhere (even in that street), so not sure why someone would travel from out of area to take their kids to that one. The other nurseries may well legitimately feel their business would be threatened by a new competitor. As much as I wouldn't wish any other business to suffer, that's how a free market operates, and isn't grounds to deny planning consent, is it?