THE Co-op has confirmed it will be moving into the empty Budgens store in Bourne later this year.
The announcement by Anglia Co-operative ends months of speculation over the future of the Burghley Centre unit which has been empty since March 2008.
Anglia Co-operative's Rainbow store from Manning Road will close and reopen at Budgens in October
.
It will change the store's name to Co-operative Food and all 73 staff will keep their jobs.
The society is in talks about the redevelopment of the Manning Road site which has outline planning permission for housing.
Anglia Co-operative had planned to move to the former Opico site in South Road but sold the land to Tesco. As part of the deal the Co-op has to leave the Manning Road site because of limits on the number of foodstores in the town.
The former Budgens site still has permission to operate as a foodstore.
When Budgens closed the lease was bought by Waitrose but the building has stood empty ever since. Anglia Co-operative has now taken on the lease.
Its chief executive John Chillcott said: "The unit provides a good environment for our Co-operative Food offer and will be branded accordingly.
"While the name may be changing to Co-operative Food, the service and standards we have delivered to our members and the community for 30 years will be maintained.
"We expect to be able to relocate smoothly without any need for a closure period."
Mr Chillcott added: "The future of our foodstore and the negotiations around it have been long and protracted which has made it a difficult time for staff, so I'm doubly pleased we have been able to conclude a deal that safeguards jobs and gives us the opportunity to continue to deliver a service to our members and the people of Bourne through our food, funeral and furniture businesses."
Anglia's AHF furniture store in Manning Road will not be affected.
Businesses in the Burghley Centre have welcomed the news.
Bourne Photographic owner Ian Richards said: "Hopefully this will reinvigorate the town because at the moment it's not good."
Age Concern UK manager Kirsty Zealand said: "It is a brilliant thing as we have so many shops closed down here and the footfall has dropped off.
