The Original Factory Shop is set to open a new Spalding store in the former Beales premises.
The company says its 185th shop will create 11 jobs in the local community.
The firm currently has a branch in Holbeach.
A spokesman for The Old Factory Shop said: “The new look discount department store will be situated at 7 Market Place and will see the retailer bring its range of bargain-based clothing, pet products, electricals, homewares, a party shop service and reserve and collect to Spalding customers and residents.
“Adding a unique offering to Spalding’s shopping area, customers will be able to purchase big brands with big savings. Brands stocked at the store will include the likes of Christian Lacroix, Adidas, Russel Hobbs, Clinique and Olay.”
Regional Business Development Manager, Adam Birt, comments: “TOFS is a national business made up of over 180 local businesses, so we’re really excited to be coming to Spalding and serving the local community.
“Our store will be run by local people in the heart of Spalding and we’ve started recruiting for 11 job positions and are keen to hear from candidates so that we’re ready to start serving up big bargains when the new store opens on March 25.”
