Construction on the Woolworths store at Warrawong Plaza is expected to start in the coming months ahead of an official opening next year.
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The store will take the place vacated by Target, which closed its doors earlier this month.
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Artist's impressions of the Warrawong Plaza exterior show the supermarket will be a prominent feature on the eastern side of the shopping centre.
The move will see the plaza as the only shopping centre in the Illawarra to include the big three - Woolworths, Coles and Aldi.
Elanor Investors Group manages Warrawong Plaza and Head of Retail, Development and Mixed Use Matt Healy was pleased to bring in a third supermarket.
"We are pleased to have received DA approval [from Wollongong City Council] for this game-changing development at Warrawong Plaza," Mr Healy said.
"We are excited to welcome Woolworths to the centre and be able to offer home delivery to the local community as we move forward in an increasingly digital world, as well as elevating the centre's emphasis on essential and everyday needs."