Grocery retailer Food Warehouse is to open in Londonderry's Crescent Link Retail Park as part of a £5m investment which includes the revamp of existing stores.
The project will include the proposed expansion of the current M&S Foodhall and the resizing and improvement of the Homebase store.
Carpark and accessibility improvements are also being planned to alleviate congestion in the area. It's hoped the investment will lead to the creation of 110 jobs in the city.
Food Warehouse, a large grocery retailer which is part of the Iceland group, will open its second Northern Ireland store at the site, bringing 25 new jobs. The M&S Foodhall, which has been a tenant at the Crescent Link for over 13 years, will now be able to "offer an even wider range of M&S Food products," according to a spokesman.
David Samuel Properties bought the retail park last year after it was put on sale by Lotus Group. Matthew Beddow of David Samuel Properties said: "This announcement comes at a challenging time for the retail sector as it comes to terms with the increase in online shopping and the recovery from the impact of the coronavirus. This investment demonstrates the confidence in Derry-Londonderry of these powerful brands as a place for investment at an important moment for its economic growth."
Mr Beddow said he was committed to resolving traffic issues that have "concerned residents for a number of years". He said the retail park was in negotiations with other retailers and more announcements would be made soon.
Food Warehouse launched its first NI unit in Newtownabbey in February.
At the time its managing director Richard Walker said Food Warehouse, which is the fastest growing grocery retailer in the UK this century, planned to open many more stores across NI. It has opened more than 120 stores UK-wide since its launch in 2014.
A spokesman for the retailer said: "The Food Warehouse was formed in 2014 and has very much been designed to complement our traditional high street and city centre stores.
"The new store will create 25 new jobs across a range of roles that will be filled by local residents."