Trafford-based Russells Construction has started on a £1.5m conversion of a 40,000 sq ft unit at Royal London Asset Management's Capitol Centre in Walton-Le-Dale near Preston.
The construction firm was appointed by Royal London to convert a former bowling alley into a retail space for the upmarket food chain Waitrose.
The four month programme is set for completion by the end of October, when the shell will be handed over to Waitrose for fit-out. The store will open in February 2012.
The refurbishment entails the strip out of existing fittings, roof and window replacement, removal of internal walls, and the installation of new flooring. Russells will be responsible for the new car parking and delivery areas, a new entrance lobby and paving.
Gareth Russell, construction director for Russells Construction, said: "The supermarket sector has proved to be the most robust part of the retail sector over recent times and it's great to see investment coming through for new stores, especially for a quality retailer like Waitrose. We have a lot of experience in retail construction over the last 15 years and so were delighted to have been appointed to this project by Royal London with whom we have worked in the past on both refurbishment and new build.
"Russells has developed a strong track record for delivery, performance and partnership working. It is important that these works do not impact upon the continued operation of the retail park and we will be working with Royal London to ensure that the customer experience remains high priority."
Waitrose expects to begin a recruitment drive for the new store in autumn 2011.