The first phase of a new £3 million mixed-use site in Ancaster is set to be completed by Christmas.
The Co-op plans to open a 3,000 sq ft convenience store on the 1.1 acre site in Ermine Street in time for the festive rush.
Planning permission for the scheme, which will include 14 two-bed and three-bed houses, was granted in May and work started in June.
The site was occupied by a petrol station and was acquired in 2013 by developer Wheatcroft Land, in partnership with TPS, the property development specialists.
Wheatcroft Land director, Catherine Haward, said: “Wheatcroft Land undertook numerous developments during the 1990s but over the last 10 years has concentrated solely on managing its investment portfolio.”
She added: “This development is the start of our return into this area of the market”.
Jamie Bunce, TPS director, said: “The Co-op will be a valuable addition to the community when it opens later this year with the homes following next year.”
He said TPS and Wheatcroft Land continue to actively look for similar opportunities in the area.