The former Wilko superstore in Barry town centre has been bought by Vale of Glamorgan Council.
The Holton Road building has remained vacant since September 2023, shortly after the High Street retailer collapsed.
The Council says that they want to redevelop the store into "a vibrant space for small businesses" as part of an "ambitious plan" to drive more footfall into the town centre.
The sale has been made possible through a £950,000 loan from the Welsh Government.
The council's leader Lis Burnett said their "immediate priority is to bring shoppers back to Holton Road".
She added: "There are some great retailers in Barry town centre and right now we think the best thing we can do is to help bring more customers to their doors."
"Work is required to make sure the building can be re-opened but as soon as we are able to we will be using the space to put on events and exhibitions that will attract people into the town centre. We'd love to hear residents' ideas on what these could be. "
"In the longer term, we want to create something that adds real value to Holton Road. There are some great examples elsewhere in Wales where the right scheme can transform a town centre. We want to work with local businesses and the people of Barry to design something that has the same effect.
Vale of Glamorgan Council says the purchase forms part of their wider strategy to support the county's four town centres as "vibrant, welcoming, and sustainable places for people to live, work, and visit."
The long-term plan for the former Wilko site will be developed by working with local businesses and the wider communities - but from early next year, the council intends to use the building to support traders by hosting activities aimed at bringing people into the town centre.
In the short term, the building's windows will be used for seasonal art displays to attract shoppers, while work is carried out to make the store ready for use.
Cllr Burnett said the local authority had been closely monitoring the building and "acted immediately" when the opportunity came up to buy the site.
"We believe in Barry and are ambitious for the town", she said. "This is the most significant investment in the town centre for many years and it's important that we get it right. For this reason, we'll involve as many people who share our belief as possible."
"We want to hear all views but to be clear this is not a site we see being used for housing. This investment is about supporting Barry's high street, its retailers, and giving more people a reason to visit the town."
The Welsh Government supported the sale of the Wilko building as part of its Transforming Towns loan scheme.
Local Government Secretary Jayne Bryant said: "This investment...demonstrates how partnership between local councils and the Welsh Government can help revitalise our town centres and support local businesses."
"By bringing this prominent site back into use, we're not only tackling a vacancy on the high street but also creating opportunities for small enterprises and the community to thrive."
"We want town centres like Barry's to be vibrant, welcoming places where people want to visit, shop, and spend time - and this project marks an important step towards that goal."
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