Work has begun on a new Next store at Marsh Mills Gateway retail park.
The new store is set to create 150 new jobs, Plymouth Council has said.
The brownfield site is owned by Plymouth City Council and was pre-let to Next in December 2016.
The £11million store, which will be opposite their current store at the retail park, will comprise of the retailer's 'Home' format, selling fashion, furniture, homewares, and will include a garden centre and a café.
Similar stores have been developed in High Wycombe, Hedge End, Hull and Handforth Dean.
The new store is estimated to bring in around £300,000 in business rates a year for the council.
Part of the planning negotiations around the project, include Next having to continue trading within their city centre store at Drake Circus for at least 10 years.
The Council says it has invested in the site as part of a long-term strategy to create substantial income, jobs and business opportunities in Plymouth.