Property developer Terrace Hill Group has signed a contract with Sainsbury’s for the development of a 50,000 sq ft store in Sedgefield.
Durham County Council approved the scheme for planning in December and construction work is due to start later this year.
Work on the store and 322 space car park will be completed by Easter 2013.
Terrace Hill has completed three large foodstore schemes at Bishop Auckland, Manchester and Helston in the last two years and it has a committed development programme of 652,000 sq ft of new space.
Terrace Hill chief executive Philip Leech said: “We continue to see good levels of activity in the foodstore sector and we expect the growth of our foodstore development pipeline to deliver significant returns for the business.”