Aldi has submitted a planning application for a 1,254sqm new store on Bilston Street which will create 45 new jobs
An Aldi spokesman said: "Part of the site is currently used as a car park and other areas are vacant and unkempt. A new Aldi store here will regenerate a significant site within Sedgley and deliver a multi-million investment into the local community.
"The site will be accessed via Bilston Street, with 91 car parking spaces and new landscaping at the boundaries."
Aldi said patrons of the Red Lion Hotel will also get a new car park as part of the development and shoppers will be able to park for free outside the store for up to 90 minutes, which would be a boost to local shops. .
The spokesman said: "A new, smaller car park will be available for customers of the Red Lion Hotel. Aldi is committed to delivering developments that are in keeping with the local area and provide additional choice for the community. The new store’s glass frontage will make the area more attractive for pedestrians and passing motorists.
"Inside the store, shoppers will have more space, with a modern design that makes access to goods quicker and easier than ever before."
There will be four electric vehicle charging points, with infrastructure installed for additional charging points in future.
As well as the 45 new jobs at the store, there will be additional employment opportunities during construction of the building, which could be open by the end of next year if planning permission is granted.
The spokesman added: "There will be attractive landscaping incorporated around the site to improve its appearance."
Aldi is the fifth largest supermarket in the UK and is planning to increase the number of its stores from 880 now to 1,200 by 2025.
The company employs more than 34,000 people in the UK.
Ciaran Aldridge, Aldi national property director, said: "Aldi is growing rapidly and we are welcoming around a million new customers into our stores every year."