The Co-operative Food has revealed a plan to open a new convenience store as part of the redevelopment of The Ship York pub in Rotherhithe Street.
The pub closed last November and was later used as a shisha bar.
Planning permission for the redevelopment of the site with a five-storey block of eight flats was granted more than a year ago.
The planning permission includes provision for a pub at ground floor and basement level, but now The Co-operative wants to open a food store instead.
Local residents have now received leaflets from The Co-operative with details of their proposals and an invitation to a public exhibition on Monday 6 July.
The Co-op says its proposal would create 20 to 25 full-time or part-time jobs.