Dan Murphy’s has lodged plans to create a small-format wine store called The Cellar in Sydney’s Martin Place as part of a $2million development that includes a function space.

Endeavour Group said the design concept “embodies the notion of a ‘flagship’ store, a premium experience at engaging destination to discover and experience fine wine and spirits. It will incorporate an aspirational range, combined with world class service, ultimately becoming the ‘crown jewel’ within Endeavour Drinks network, building brand equity.”

The store will feature a wine tasting area, track lighting, a temperature-controlled environment, and wall length modular wine racks that would stock rare, back vintage and hard-to-source Australian and international wines.

The concept store, which has been on exhibition with the City of Sydney, has a floor area of 264sqm – or about a quarter the size of a normal Dan Murphy’s store.

The design echoes the David Jones Food Hall at Bondi Junction and the Dan Murphy’s Prahran Cellars in Melbourne, the first store opened by the retailer’s founder, Daniel Francis Murphy, in 1952.

The Martin Place address has a tragic history. It is the site of the former Lindt Cafe where a 16-hour standoff with a lone gunman played out in December 2014. Cafe manager Tori Johnson and barrister Katrina Dawson were killed during the seige.

“We can confirm that we have submitted a development application for a premium wine store, The Cellar, at 53 Martin Place in Sydney’s CBD,” a spokesperson for Endeavour Group told Daily Mail.

“We are very mindful of the history of the site, which is why we have spoken with family members of those who were killed in the siege to hear their views before making a decision to proceed with an application.”

If approved, the store would operate from 9am to 10pm from Monday to Saturday and 10am to 10pm on Sunday.

The new format Cellar store is not the only one proposed in Sydney, with similar plans in the works for a site on Burns Bay Rd in Lane Cove.