Plans for 83 homes have been submitted for the former Waitrose site in Littlehampton.
On Tuesday, plans were submitted to Arun District Council to demolish the existing buildings on the site in Avon Road, Littlehampton, and build 83 homes there.
The plans also include 158.5 square metres of floorspace which could be turned into shops, office space, food or drink outlets. There would be 41 parking spaces for cars, including two for disabled drivers, and 108 spaces for bicycles, with landscaping of the surrounding area.
The store opened in 2011, and in March 2015 it announced it would be moving to Rustington.
Other potential uses for the site included an M&S food hall, which was eventually approved for Angmering.
As a major employer in the town centre, residents have expressed concern that whatever replaced the supermarket chain would create jobs.
In its application, developers Ropemaker Properties said the plans 'fully comply' with planning policies and Arun's 'overarching strategy for the district' - mixed-use developments in town centres.
While it is in a flood risk area, the developers claimed their designs meant there would be a 'low risk' of flooding ton the site or in the vicinity.
The site falls below West Sussex County Council's requirement for parking spaces - but Ropemaker said the site was 'highly accessible by more sustainable modes of travel'.
There will also be solar panels on-site to reduce CO2 emissions, the developers said.