The search is continuing to find a suitable business use for the former Oldrids site in Gainsborough.
Oldrids, which closed last month, occupied a central position in the town’s Market Place.
West Lindsey District Council is now working with Lincolnshire Co-op, which owns the unit, to find an alternative use for the site.
Councillor Sheila Bibb, chairman of the council’s prosperous communities committee, said: “This site offers a unique opportunity for both large and small retailers to create a modern and diverse offer in the centre of town.
“We would welcome discussions with potential users to see how they can work with us as part of our wider plans for the continuing regeneration of Market Place and Market Street, which will result in a major expansion of employment in the local area.”
Lincolnshire Co-op continues to run the post office and the popular Lincolnshire Co-op travel branch at the site.
These two services are now accessible from the Lidl side of the site.
Emma Snedden, from Lincolnshire Co-op, said: “Through our agents, Banks Long and Co, we aim to bring new valued services to the town.
“There has been interest and we are discussing ideas about how the site could be better utilised in the future.
“We are committed to Gainsborough and have seen success with our project to develop the Lidl site behind Market Place.”
In addition to its work around Market Place, the council is currently in the process of procuring a development partner to take forward substantial redevelopment to transform the riverside area.
It forms an integral element of the authority’s plans for Gainsborough’s future, which include a £1.8 million bid to the Heritage Lottery Fund for a Townscape Heritage Initiative and a Shopfront Improvement Scheme. Both are aimed at restoring the historic environment of the town centre.
There are also plans for a bid to the European Regional Development Fund for Gainsborough Green Corridor, to improve the quality of local green spaces.