Lancashire-based developer-contractor Worthington Properties has started work on a £9m residential and retail scheme in Clifton Drive North, Lytham St Annes.
The three-storey building will contain a 14,155 sq ft Aldi foodstore and 70 parking spaces for shoppers, plus 34 apartments, with sheltered basement car parking for ten residents.
The development is situated on the site of a derelict five-storey building that was the former home of St Annes Conservative Club. The club recently relocated to new premises nearby.
The 34 flats are being developed by Hollinwood Homes, the residential division of Marcus Worthington Group.
Russell Worthington, development director of Worthington Properties, said: "The development will be in keeping with the surrounding area and both the retail and the residential elements of the scheme will offer new opportunities for the local community.
"The new Aldi store will help to diversify the food retail experience in St Annes and help create new jobs for the area, while the apartments will offer first time buyers and keyworkers the chance to own their own home."
This will be the third Worthington Properties development to feature an Aldi store, following others in Huddersfield in West Yorkshire and in Sale, Greater Manchester.
The scheme is set to be completed by November 2013.