Plans have been put forward to close Freshwater's Co-operative store - and turn it into a Tesco.
The Afton Road shop, West Wight's largest supermarket, is expected to change hands in autumn of this year.
In a statement on the Co-Operative Facebook page, the company said it wants to focus on its convenience stores.
A spokesperson said:
"Whilst Freshwater is a successful store, it’s our largest store and the only one that fulfils the supermarket mission alongside our other 200 convenience stores.
"The sale will allow Southern Co-op to focus on its convenience stores including the store in Avenue Road, Freshwater, which will continue to serve the local community.
"There are no plans to sell or close Southern Co-op’s other retail stores or funeral homes on the Isle of Wight and all of our colleagues have the opportunity to transfer to Tesco under the Transfer Undertaking for the Protection of Employment Regulations (TUPE).
"Our colleagues will also be working with our community partners, local suppliers and other key stakeholders to ensure the transition is smooth and to reduce any impacts wherever possible."
Mark Smith, Chief Executive, said:
“We would like to emphasise that the decision to exit a site is never taken lightly and in no ways reflects negatively on the hard work and commitment of our colleagues, especially throughout the pandemic.
“As a regional business, we remain committed to the Isle of Wight economy and communities and will continue to serve the island through our other food stores, funeral homes and our partnerships with community organisations and food and drink producers.”
The Freshwater shop is also home to the Post Office.
The news follows Co-Op's decision to close its Newport High Street store earlier this year.
Tesco, meanwhile, have recently upgraded its Wootton shop following a month-long refit.
The Freshwater site would be the supermarket's second biggest on the Isle of Wight.
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