TESCO is believed to be in talks to take over the old Woolworths store in the centre of Llandudno.
The supermarket giant is thought to be interested in opening a Tesco Express style store at the upper end of Mostyn Street.
Speculation mounted after budget store Poundstretcher pulled out of moving into the old Woolies.
The discount store’s logo was decked across property, which runs from 113 to 117 Mostyn Street, trumpeting its imminent arrival in the town.
But the signs were suddenly taken down last week after the property’s landlords started talking to another retailer.
Martin Collinson, a spokesperson for Poundstretcher, confirmed that the discount chain had dropped their interest in the site.
He said: “The reason that our signs had come down is that the landlord has entered into negotiations with another retailer.”
A spokesman for Tesco said: “We don’t normally comment on rumour or speculation. We are often looking for areas to invest in, particularly in the local areas and high street, and if we find a site we will inform and consult with the community at the appropriate time.”
Since the nation-wide closure of Woolworths in March last year the retail space has been home to Publishers Book Clearance and Alworths before eventually closing again in Spring.
There will therefore be relief if Tesco does move in although some councillors are cautious about the development.
Cllr Gary Burchett, a town councillor for Mostyn ward, welcomed talk of the vacant site being filled, but questioned the impact a Tesco store would have on businesses in the town.
He said: “We need more development at that end of the street. Although that wouldn’t be the best shop to go in - the area is sadly underdeveloped.”
Cllr John Riddler said: “It would be just as good having a bigger Tesco in town. For the town it could be better for us again.”