Tesco have confirmed it has launched what is understood to be a million pound plus redevelopment of its Horncastle store.
The company says the improvements - which will feature an in-store bakery - will lead to an improvement for all customers.
A Tesco spokesman confirmed the work should be completed by the end of October but refused to reveal the cost.
However, sources close to Tesco Head Office have indicated around £1.2m is being spent.
It is also believed to be one of the few stores in the country that Tesco is updating following the company’s much-publicised financial problems earlier this year.
No new jobs will be created but it is thought the investment will protect current employees at the Horncastle store.
A spokesman said: “We’re very pleased to be investing in the store to improve it for our customers.
“We’re refurbishing the store to improve it for all and are looking forward to installing a new in-store bakery.
“We are looking to minimise any disruption and are sorry for any inconvenience caused to our customers while we do the work.
“We look forward to our customers enjoying the improved store when work completes at the beginning of October.”
It was initially thought the improvements would also include a hot food counter and customer toilets.
However, the spokesman confirmed neither of those would be included as part of the current programme.
The improvements amount to a significant investment and would appear to put an end to lingering speculation about the future of Tesco in Horncastle.
There have been doubts about after the company failed to secure planning permission four years ago for a new site off Lincoln Road- following a protracted battle with East Lindsey District Council.
More recently, the Tesco site has been linked with a possible Aldi store.
However, Aldi confirmed in last week’s Horncastle News that while they were still ‘interested’ in Horncastle, they had no immediate plans to locate to the town.
Customers have welcomed the refurbishment.
Ellie Talbot said: “The store needs updating. It’s better than it was.
“The staff are friendly but some things you need you can’t always get.”
Ian Standing welcomed the bakery but said he was ‘disappointed’ there were no plans for customer toilets.