Nearly 100 jobs are safe after a U-turn by supermarket bosses.
There was dismay last year when Somerfield said it was going to pull out of Shoreham.
The company had planned to sell the Ham Road store - the biggest shop in the town - because of competition from bigger out-of-town rivals, such as Tesco at the Holmbush Centre.
Many workers feared a takeover by another company would result in job losses.
But now Somerfield has been taken off the market, delighting residents and traders alike.
Mike Capelin, chairman of Shoreham Town Association, said: "This news is a relief for the town and for the store staff.
"We need a store of the calibre of Somerfield in the town because not everyone has a car or wants to shop out of town all the time.
"We have a Co-op but Somerfield is the biggest in town and is a lifeline for many people.
"The decision is good for jobs, a relief for the staff and good news for Shoreham."
The local store opened in 1991 and employs 93 staff whose jobs are now secure.
Hiran Patel, chairman of the Adur District Chamber of Trade and Commerce, said: "I am really pleased at this news. The store provides a focus for the town centre and draws people in on a daily basis.
"Without it the rest of the traders would lose out.
"There was a lot of uncertainty over the proposed sale but this is good news for the town centre. It will keep the vibrancy of the town going."
Somerfield bosses - who last month said there had been "a lot of interest" in the site - said a review of plans had led to the U-turn to keep the Shoreham supermarket and all staff.
A Somerfield spokesman confirmed: "Our Somerfield store in Shoreham is no longer for sale.
"Following a review of our sales plans for it was decided that the Shoreham store could be accommodated within our strategy to go for neighbourhood retailing within towns.
"The company believes it can make a go of it in Shoreham and compete with its rivals.
"All the staff at the store would like to thank all our shoppers for their continued custom and look forward to serving them in the future."
Converted for the new archive on 30 June 2000. Some images and formatting may have been lost in the conversion.
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