John Turner & Sons has started work on a new Booths supermarket in Milnthorpe near Kendal.
The £1.6m project which covers 17,200 sq ft at Parkland Industrial Estate should be ready for fit-out in June and open to customers next winter.
It will be Booths' 29th store and is expected to employ 65 people.
Preston-based John Turner, which also has bases in Liverpool and Manchester, was appointed by the Milnthorpe-based landowner Houghton-Parkhouse.
John Turner's managing director John Clarke said: "Our business has grown on the basis of delivering projects of the highest standard and to be working for a high profile retailer such as Booths is an acknowledgement of our track record."
Houghton-Parkhouse director Pam Houghton said: "Booths will be a great asset to the area with the surrounding villages benefiting from visiting Booths, Milnthorpe and all it has to offer. The supermarket is the first of a further four retail premises planned for the site together with the 10 available industrial units."
The contract includes the supermarket shell with a service yard, access road, car park and landscaping. John Turner said the store's façade will be constructed in stone and locally sourced materials.