Freshwater's Co-op will still become a Tesco and it will still contain a post office, the organisations involved in the delayed store changeover have confirmed - though none of them have named the date.
Isle of Wight councillor Chris Jarman, for Totland and Colwell, said there is "overwhelming relief" among local people because, "it's been such a concern for so long."
The Afton Road shop was due to change hands in September and its staff were to become Tesco employees instead.
When that date passed, the swap-over moved to November and then December, according to Cllr Jarman.
Months later, in January, it continues to operate as a Co-op.
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In October, two months after Tesco applied for store signage, planning permission was refused by the Isle of Wight Council, because one sign was criticised for being too big.
Cllr Jarman told the County Press there had been significant concern among local residents, as rumours began to circulate about the store and its Post Office's future.
This week, a Tesco spokesperson told the County Press: “We are excited to open our new store in Freshwater and look forward to welcoming the local community.”
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For Southern Co-op, a spokesperson said: "We continue to remain in partnership with Tesco and will carry on operating the store until completion takes place."
An eventual refit will see the store and the post office close temporarily, before both reopen at the same time.
On social media this week, Councillor Jarman revealed he had received written confirmation, from Ian Boden, Tesco's Head of Service Operations, that the Post Office would stay.
'Decimated' shelves last autumn - around the same time as the shortage of HGV drivers was making the headlines - helped fuel uncertainty over what was happening with one of the biggest grocery shops in the West Wight.
Cllr Jarman said: "Everybody expected they were going to shut imminently and then everything was going to pop up again.
"We've got a very elderly population and they are heavily dependent on the Post Office.
"We want to make sure they're supported.
"We had a lot of discussion with the Lloyds and Natwest mobile banking units.
"We also had issues about the Post Office in Totland which is run by a community support initiative - from a room.
"People are very dependent on the one in the Co-op and use it when they do their shopping."
A statement from the Post Office about the Afton Road branch confirmed nothing more than its continued operation, at this time.
It said alternative facilities at Totland Bay are run by the Postmaster for Godshill and are open between Monday and Friday, from 8.30am until 1pm, and on Saturday, from 9 until 11am, including for banking.
Meanwhile, the confirmation that the Post Office will remain in Freshwater has been welcomed by residents and businesses and Cllr Jarman said the announcement at Totland Parish Council saw members give 'a leap for joy'.
They were 'ecstatic', he said.
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