A new Argos store, the second in Lincoln, is being built uphill at the Carlton Centre, set to be open by Christmas.
The shop is expected to create around 25 new jobs in the city.
The Carlton Centre Argos will use the largest of two new units that are now being built between Focus and Pets at Home.
The smaller unit, of just under 2,000sq ft, will be available for commercial and retail use, marketed by Banks Long & Co Lincoln.
The two new units are part of the phase 3B to develop the Carlton Centre with £2 million investment by Lincolnshire Co-operative.
Lincolnshire Co-operative’s Chief Executive Ursula Lidbetter said: “The Carlton Centre is a development we are proud of and we are pleased to be investing further in the site.
“We believe the work will provide more facilities for the people who already live, work and shop at the centre and will also attract new customers to use the services.”
Peter Banks of Chartered Surveyors and Letting Agents, Banks Long & Co said that after completion of Phase 3, the Society will then be concentrating on Phase 4 at the junction of Outer Circle Road and Carlton Boulevard.
He said this approved retail warehouse space would be ideal for major electrical and furniture retailers who have limited representation in the northern part of the city.
“I am sure the Co-op will be maintaining the high standard of design delivered so far throughout this project,” Banks added.
Ann Holdsworth of Argos said: “Argos are tremendously excited by this new development which will complement and support the retail premises they already offer in the city centre.”