Staff at the Westgate department store in Cinderford are delighted at news the shop is being sold off by the Co-op.
The Anglia Co-operative Society expects the deal with Bournemouth-based JE Beale plc to be completed by the end of May.
Bosses say the deal will improve job security and opportunities for the store's 20 staff in Cinderford.
Store manager Lynne Wilding said it was "brilliant news".
She said: "We don't know any details at this stage but this is definitely going to strengthen our position. I think it's going to be a fabulous move and it will put us in a much better position in this financial climate."
Other traders in the town were pleased that the store's future was secure.
"If the store had gone completely then Cinderford would be left a bit of a ghost town," said Janet Williams, who works in the DIY Centre.
Another trader, who did not want to be named, said Westgate was the only shop that brought people into the town.
JE Beale plc, which traces its roots to the Fancy Fair store which was set up by John Elmes Beale in 1881, will now be one of the largest UK department store groups.
Co-op members will still be able to earn points and redeem dividends at Westgate stores in future and Anglia will continue to operate the furniture, travel, optical and hairdressing departments within the stores.
Members' share accounts remain invested in Anglia Co-operative and will be serviced via the members' offices as usual by post, telephone and online via the company's website.