Great Harwood Co-op is to be taken over by supermarket giants Morrisons from next month.
The Queen Street store and its 59 staff will transfer over to the country’s fourth largest supermarket on August 26.
Co-op bosses had fiercely contested Tesco’s bid to open a superstore in Great Harwood, claiming it would force the Co-op to close in six to 12 months.
The Tesco will complete a triangle of supermarkets in the town, along with Aldi, which opened on Heys Lane last month.
Great Harwood councillor Lynn Wilson said: "The Co-op did make statements at the time that Tesco was about to come to Great Harwood that they would have to think through their position seriously.
"I was worried that it would become an empty site. If the Co-op is to go that’s sad for people who support the Co-operative movement, but I’m very relieved that there will be no job losses with the Morrisons coming in.
"I hope they will bring back a fish shop and more fresh produce."
A Co-op spokesman said: "The Co-operative Group can confirm it is to sell its food store in Queen Street, Great Harwood, to Morrisons as a going concern.
"Staff at the store have been informed of the sale. All staff, 16 full time and 43 part time, will automatically transfer to the new operator with their terms and conditions of employment maintained. The store will be taken over by Morrisons on August 26.
"We are pleased to have concluded a deal which ensures employment for the staff, as well as a continuing service for the local community. We would like to thank our shoppers for their valued custom over the years."
