Shoppers flocked to the Clifton Street store to pick up bargains as prices were slashed by up to 50 per cent.
Police were called in to keep a watchful eye on the crowds as excited bargain hunters queued for as long as 45 minutes before they were allowed into the store.
Not everyone was excited by the announcement though - with some traders and residents left angry at the loss of a shop which has been part of the local landscape for almost 50 years.
Fears have already been raised that Lytham is turning into a ghost town, and some say that the introduction of Tesco will further damage a high street which is struggling to retain its unique character.
Juliette Bishop, Corporate Affairs Manager for Tesco, confirmed that the supermarket would move in as soon as possible but refuted claims it would be harmful to the local community.,
She said: "In our experience, we have found that Tesco Express encourages more people to shop locally without having to drive to large out of town supermarkets, which can strengthen existing local centres and generate investment."
Woolworths said that staff at the store are now in discussions about their future with the company and confirmed that the St Annes, Blackpool and Preston outlets were unaffected.
The store is set to close on November 1.