Eric Wright is starting on site with the construction of a £17m retail extension at Market Walk in the Lancashire town of Chorley.
M&S Foodhall and TK Maxx have been secured as anchor tenants.
The centre is owned and managed by Chorley Council, which has already lined up a six-screen Reel Cinemas multiplex. The 73,000 sq ft extension is made up of seven units, being let by agents Lambert Smith Hampton and Mason & Partners.
Chorley Council bought the 34-unit Market Walk shopping centre from Orchard Street Investments in November 2013 and secured planning permission for the extension last year.
Enabling works started at the end of last year, with completion scheduled for late 2018. The £17m extension project covers £12.6m on the centre itself, and around £4m on associated public realm.