The store will be transferred to FoodWorks, which has grocery shops at Bradbury and Thirlmere.

Coles managing director Ian McLeod, who announced the transfers today, said all store employees would be offered jobs with FoodWorks and would retain their entitlements.

"We think this is a great outcome for team members and customers of both Coles and FoodWorks,'' he said in a statement.

Other stores in the Macarthur area to be sold are Coles at Harrington Park and BiLo at Tahmoor.