Work has begun on the site of the new Farmers department store building in Hastings.
Wallace Development Company, which is building the new store, said the work would take about 12 months to complete.
The 6500m sq store is being built on the site of the old Roach's Building, on the corner
of Heretaunga St and King St, now known as TSB Corner.
"The new store will accommodate both of Farmers' existing stores over two floors and is expected to contribute significantly to the Hastings retail market," Wallace Development project manager Steve Birkhead said.
The development will be built by local company Gemco Construction, which is also building The Warehouse at Home HQ, on the former Nelson Park site.
Deputy Mayor Cynthia Bowers said the development would be a huge boost to the inner city.
"The development signals a massive opportunity for Hastings retail, as vacated tenancies can be backfilled and smaller retailers will be able to capitalise on the increased foot traffic generated by the combined store."
Councillor Sandra Hazelhurst said the start of construction showed Farmers had confidence in the Hastings retail market, which was expected to have a flow-on effect with other national retailers.
TSB Bank will continue operating from the building during construction.
