The store will be located in the former New World supermarket in Gordon Rd.
Work had begun on an internal and external refit by contractor Naylor Love and an internal store development team, new format national operations manager Kathy Kramer said.
The store would carry a comprehensive range of general merchandise and apparel product, she said.
"Mosgiel will be one of the smaller stores in our chain, where we are looking to bring the customers' everyday needs to more convenient locations."
Specific details about product lines were being kept "under wraps" until closer to the store's opening and much of the range had not been finalised, she said.
Staff recruitment was expected to begin next month once a store manager was appointed.
The exact number of positions available was unknown at this stage.