The former Morrisons in Royston could be demolished for retirement homes.
Developers McCarthy Stone want to knock down the shop on Princes Mews and build 32 retirement homes.
The building has been empty for years, after the supermarket chain closed the site.
Plans suggest the new building could be up to three storeys – a similar height to the current supermarket.
They also include around 30 car parking spaces, a communal gardens for residents and a retail unit, if North Herts Council grants planning permission.
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