The store in Village Walk in the town will become the sixth Shoprite venue to be rebranded following the refurbishments of outlets in Castletown, Douglas, Ramsey, Port Erin and Peel.
Shoprite says the Onchan store will close on June 15 and, although no specific date for reopening has been set, the rebranded shop is set to reopen in August.
Posting on Facebook, Shoprite said: ‘Our Onchan store in the Village Walk will be closing at 9pm on Saturday, June 15- your closest alternative Tesco store is at Little Switzerland in Douglas.
‘It's been a pleasure to serve you in this store and we hope you'll enjoy shopping in it when it reopens as a brand new Tesco store in August.’
The transformation of the Onchan store follows on from the opening of the new Tesco branch in Peel at the end of last month.
Tesco’s purchase of Shoprite brought to an end 51 years of trading for the island supermarket chain which was launched in 1972 by the Nicholson family.
Until the sale was announced last October, Shoprite was the biggest independently owned food chain on the Isle of Man.
Tesco has been serving customers on the Isle of Man since 2000 when it opened its flagship store in Douglas.
The first refurbished Tesco store was the Tesco Express in Castletown which opened in February although it was an inauspicious start as customers had to be evacuated just hours after the ribbon was cut due to thick smoke which triggered the fire alarm.
Five of the nine new Tesco stores have already opened in Castletown, Douglas, Ramsey, Port Erin and Peel. The most recent opening was the Tesco in St Michael Street in Peel.