Toolstation has signed a 10-year lease for 5,000 sq ft of trade counter space at Chester Trade Park on the city's fringe.
The park, on Bumpers Lane near the former Chester City FC stadium, is owned by Cheshire West & Chester Council.
Toolstation was founded in 2003, has around 40 branches throughout the UK and recently embarked on a nationwide expansion.
Tom Creer, of Beresford Adams Commercial, advising the landlords, said: "In this tough economic climate it is extremely encouraging to have secured such a strong national operator at Chester Trade Park and thus securing rental income for the next 10 years on this substantial property."
Toolstation was advised by Adept Consultancy.