Work has started on a new Lidl store on Beaumont Street in Gainsborough in place of the former multi-storey car park, which has now been demolished.
The new site is expected to be twice the size of the current Lidl located on Ropery Road, and will create an additional 15 local jobs.
It follows a multi-million pound investment and, once finished, will include a 130 space car park and 179 sq m employee welfare area.
The store should be open in early 2018.
West Lindsey District Council has struck a new deal with Tesco in Gainsborough to boost parking spaces in the town during the run up to Christmas, because of the construction of the new store.
The one year deal will enable staff who purchased parking permits to park on previously unused land at the Tesco site.