Tesco supermarket has unveiled plans to replace its current store at Yate Shopping Centre, demolishing the buildings to make way for the project.
The company has put in a planning application to begin work, starting with the demolition of the Swan pub, facing Station Road, which has been boarded up for years.
Relocation of the bus station is also included in the first stage, as well as some roadworks.
The existing superstore has served the town for decades as the anchor to the shopping centre.
But it has become dated and will be knocked down to make way for a Tesco Extra complex on the same site.
Tesco will retain a presence in the town while the construction work is underway, opening a temporary store to fill the gap until the new premises are ready.
The company said it was finalising its proposals for a suitable venue.
The new supermarket is part of a scheme to expand the shopping centre, with three smaller shops for local businesses also proposed, and further four shops suitable for national chains provided in East Walk.
Shoppers will face some disruption while the building work is going on but they have been promised the upheaval will be worth it.
Recent figures show the shopping centre is doing well, with large numbers of customers attracted to the centre despite the effects of the recession.
During 2009, total footfall – the number of people visiting the centre – reached more than 13 million, an increase of more than 88,000 on the previous year.
But retailers want to ensure it retains its appeal with modern shopping facilities.
Tesco said the application it had just submitted sought permission to carry out the redevelopment in three phases.
The area currently occupied by the Swan would be used to create extra car parking space.
Phase two would involve the demolition of the existing Tesco store and building of its replacement.
It would also include building the three smaller retail units in East Walk.
The last part of the scheme would see the construction of the four larger shops in East Walk.
Felix Gummer, Tesco’s regional corporate affairs manager, said: “This application is part of the planning process and does not have any bearing on the store design proposals.
“However, we will be submitting an application later to make one or two very minor amendments to the scheme layout and design but these will not jeopardise the progress of the development.”
The Tesco Extra will provide some 9,949 square metres of sales area over two floors, with parking underneath.
In total there will be 1,545 car parking spaces – the same number as now.
The bus station will have five bays and space for taxis and community transport will also be provided.
Building work will lead to restricted access for shoppers and drivers at the east end of the shopping centre but the entire precinct will remain open for business throughout the project.