Site clearance work has begun on a 1.6ha site, beside the Frankton-Ladies Mile Highway, formerly occupied by the Shotover Garden Centre and a house.
A spokeswoman for the Australian hardware giant said the new store was expected to be opened in the middle of next year, and would employ about 120 people.
About 220 construction workers would be employed on the project.
The Frankton store, which will provide competition for nearby Mitre 10 Mega and Placemakers stores, will consist of an 8100sqm warehouse and outdoor areas for a garden centre, timber and building materials yard, and parking for 134 vehicles.
Bunnings NZ director Jacqui Coombes announced yesterday it would close its stores in Ashburton, Hornby, Hastings, Cambridge, Rangiora, Te Awamutu and Putaruru, with 145 staff affected, because of ‘‘the challenges of the recent trading environment’’.
The closures follow a decision last month to temporarily reduce salaried staff hours and pay by 20% and work with landlords on rental reductions.
The company applied for resource consent for the Frankton site three years ago.
Independent commissioners rejected the application in 2018, with a major bone of contention being that the use of the site would contribute to a future shortage of industrial land in the resort.
The company appealed the decision to the Environment Court, which ruled in its favour 13 months ago.
It responded to Queenstown Lakes District Council concerns by making changes to the design of the building’s exterior, site layout and landscaping.
