Work on the project, which will add an extra 300sq m to the 1900sq m south Oamaru building and includes a complete upgrade of the interior, was started yesterday by Oamaru company De Geest Construction.
New World Oamaru owner-operator Justin Smith said the frontage of the building would be moved out 5m to create extra space and very little inside would remain unchanged.
There will be a new foyer entrance and checkouts will increase from eight to 14, including five self-service checkouts.
Welcome additions for shoppers will be an espresso coffee bar, extension of the fresh seafood area to include mussels and scallops and new bakery ovens to produce a greater variety of fresh breads, cakes and biscuits.
With an extra 50 bays of grocery space, the international food section will increase dramatically, providing a more expansive range to choose from.
New display cabinets, chillers and refrigerators are all included in the upgrade.
Foodstuffs South Island general manager of property and retail development Roger Davidson said the development fitted in well with the investment the company was making throughout the South Island.
In the past three years, the company had invested $80 million upgrading supermarkets throughout the South Island.
"We know how appreciative the building industry is to have contracts of this size in these difficult times and having a local Oamaru firm as the main contractor is great for the local economy," he said.
