Anglia Regional Co-op Society wants to build a new Rainbow supermarket and three other shops, including a DIY store and garden centre, on the former Opico site in South Road, Bourne.

The society had already received permission to build the units in an L-shaped development but last month submitted a fresh application for a stand-alone food store and three other units.

The firm is due to get a decision on the latest proposal in July and hopes to start work shortly after planning permission is secured.

Bosses at Anglia Regional Co-op Society say this is a strategic move to compete with Sainsbury's and have been holding talks with prospective retailers to take over the other units.

Staff at the current store would be moving to the new super-market, which would have a cafe.

Property manager Philip Taylor said: "We are pleased with the significant amount of investment in Bourne. It is one that was necessary as the old store was in a fairly poor state of repair and did not compete with Sainsbury's in town. We just feel that this is a strategic opportunity for the society. We want to stay in Bourne. We are committed to the town and feel the investment is worthwhile."

The society has agreed a deal with a national housebuilder to sell its current site in Manning Road and the former Raymond Mays garage in Spalding Road, for housing. But it would not divulge the developer's name.

Last week the society finally received outline planning permission for housing to go on the dilapidated garage site. Planning permission had already been granted for a supermarket on the site.