The Channels Islands Co-operative Society, which owns the complex, says that if planning consent is gained it will sell the land to property developers Dandara.
Plans for the proposed development of 21 two- and 48 three-bedroom homes are being unveiled tomorrow at a public exhibition at the site.
Colin Macleod, Co-op chief executive, said the store, which closed in 2015, and surrounding buildings had reached the end of their life as useful retail spaces.
The public exhibition takes place tomorrow between noon and 6 pm at the Total Sport building.
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