Proposals have been submitted to Blackpool Council seeking approval to bulldoze the former Booths store on Highfield Road in South Shore.
The Lancashire-based retailer closed the branch in summer 2015 when it opened a new store on Heyhouses Lane in St Annes.
Blackpool-based developer Melrose Homes has lodged the application with the council to carry out the demolition process.
The site has planning permission in place for 22 houses and 10 flats, including some affordable housing, and the scheme also includes a convenience store.
Contractor Pete Marquis , in Preston, has been appointed to carry out the demolition, and has submitted full details of its proposals.
Work will include stripping out the building prior to demolition, and also the removal of the existing car park to make way for the new development.
Ward councillors have welcomed the redevelopment of the site which it was feared could fall into disrepair if it was left for too long without any progress being made.
Stanley ward councillor Andrew Stansfield has previusly stated “any development has to be an improvement and the fact it is going to have a retail store is great for the area.”
Access to the new housing estate will be from Marshdale Road.
The homes will be a mixture of two and three-bedroom properties, plus one with four bedrooms, arranged as terraces and semi-detached buildings.
There will also be two blocks of two-bedroom apartments.
The convenience store is expected to be built at the junction of Highfield Road and Marshdale Road, which has been judged to be the most convenient location in terms of access.
Town hall planners will now consider the application for permission to demolish the supermarket buildings.