WORK has started at Aldi's new store in Immingham to pave the way for 40 new jobs.
Áldi aims to open the store on the site of the former Co-op in Washdyke Lane by Easter.
The firm announced it will cost more than £1 million to transform the site.
Plans to open the Immingham store have been approved by North East Lincolnshire Council and work is underway.
The town was left without a large supermarket after the Co-op closed last month.
Tesco, which was due to open there by Christmas, suddenly decided it would not open its newly-built store until the financial crisis caused by unrealistic profit figures were uncovered by the new chief executive, Dave Lewis.
Rival Aldi currently has ten stores in Lincolnshire and will be opening its doors to Immingham-area customers by Easter next year.
The firm's Louth store on Newbridge Hill is due to open later next year after demolition of the old malt kiln in the New Year.
In Immingham, planning permission has been approved for a small extension to the warehouse to accommodate Aldi's unique delivery system as well as a full upgrade of the store.
Immingham ward councillor and North East Lincolnshire Council portfolio holder for environment, Councillor Dave Watson welcomed the announcement.
He said: "I am disappointed we do not have a large supermarket in Immingham at present. But I welcome the investment by Aldi. It shows confidence in the area and it is a welcome boost to jobs for our local economy.
"Tesco ought to follow Aldi's lead."
Mark Taylor, property director for Aldi stores, said: "We know that the residents of Immingham will be delighted to hear that the proposals are going ahead. They currently have no choice but to travel outside their local area to undertake a main food shop. Aldi will put all the necessary resource into the upgrade of this store and guarantee that they will open their doors to the public on time.
He added: "The people of Immingham were let down by Tesco earlier this year. The strong competitive offer of Aldi being able to deliver fresh fruit and vegetables at significantly lower prices can only be good news for the local residents of Immingham.
"Aldi announced in July this year that they were taking over the former Co-op in Immingham. It may be a coincidence but then a few weeks later Tesco then announced they would be delaying the opening of their new store.
"This could be due to the strong price strength that Aldi have against Tesco and the number of customers leaving Tesco to shop at Aldi."
Aldi plans further stores at Brigg, Horncastle, Mablethorpe, Skegness and Market Rasen, creating a total of 200 jobs.
Tesco spokesperson Mark Thomas said: "We regret the delay to our store opening but we're excited about welcoming customers next year. Our store forms part of a major regeneration scheme, creating hundreds of jobs. Our colleagues are paid the leading rate of all the major retailers, with great benefits including a discount card and share scheme. We're looking forward to providing a wide range of fantastic quality and great value products and a high standard of service to the Immingham community."