The derelict malt kiln building in Newbridge Hill, Louth, could be pulled down and replaced with the discount shop if permission is granted.
Keep Louth Special said it was not against the plans as it would not affect the town's independent shops.
It said it was more concerned for the future of the nearby cattle market.
Aldi held an exhibition on Tuesday outlining its plans and said if the store was granted planning permission it could generate about 40 jobs.
But more concern has been focussed on another location in the town.
East Lindsey District Council's planning committee granted outline approval for a new cattle market at the Fairfield Industrial Estate, in Louth, in July 2012.
Keep Louth Special said they feared this could make way for one of the major supermarkets to buy the existing site.
Alan Mumby, chair of the group, said: "Aldi coming in is not bad news. It will get rid of the eyesore [malt kiln] and won't put a dent on Louth's independent shops.
"The cattle market site is our big one and we'd fight to the death [over it]. We don't want our high street to die."
A group that campaigns against supermarkets being built in a Lincolnshire town believes a new Aldi store is "not bad news".