The proposed 2,800 square feet store would be located close to the Market Place which has undergone a massive redevelopment in recent years.
The first phase of the Market Place redevelopment was completed in 2010 with phase two starting last year, seeking to reinstate ‘lost’ historic buildings.
Lincolnshire Co-op will now submit a formal planning application to North Lincolnshire Council (NLC) after announcing it was seeking to invest around £750,000 in the Isle development.
Councillor John Briggs, one of the ward members for Axholme North, described the proposed store as “really positive news”.
He added: “The land acquisition triggers the next stage of the Market Place redevelopment and I am sure it will be the catalyst for further private sector investment in the town.
“Lincolnshire Co-op is to be welcomed and I hope that this will lead to empty shops coming back into use and further new premises to be created.
“I would encourage everyone in Axholme North to support all our local outlets.”
Town councillor Mel Bailey is also chairman of the Crowle Market Place Delivery Group, he said: “It has been several years since the Crowle Market Place project was first initiated with extensive discussions locally on the best way forward.
“During general discussions with local people many commented about the departure of our local Co-op many years ago, which used to stand on the site of what is now the Local Hub.
“I believe a new local store is long overdue in this community.
The Market Place transformation has been jointly funded by NLC and Yorkshire Forward.
Lincolnshire Co-op chief executive Ursula Lidbetter, said: “We’re pleased to be part of this project which will help regenerate Crowle Market Place for the local community.”
NLC leader Councillor Liz Redfern said: “Any redevelopment, whether large or small, is extremely welcome, especially when it assists and benefits local businesses.
“The private sector development will, I am sure, lead to local employment opportunities, which is excellent news for the area.”