The supermarket group will take up a 21,000 sq ft unit in the Treadmills scheme (pictured above), which is set to bring up to 40 new jobs for the local community.
The scheme will also feature another 6,000 sq ft retail unit and parking for around 130 vehicles.
A detailed planning application for the first phase of the development is due to be submitted this summer and – subject to approval – construction is likely to begin in early 2019, with the Lidl store set to open in late 2019.
“We are delighted to be bringing a new store in Northallerton, which marks another milestone in our ambitious store expansion programme,” said David Murphy, regional head of property for the UK at Lidl.
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Hambleton District Council and regeneration company Wykeland Group have formed the Central Northallerton Development Company to transform the former prison.
As well as the major stores, the £16m scheme will include independent retail units, managed workspaces, restaurants, a cinema, an area for public events and a heritage centre.
Five listed former prison buildings are to be refurbished and incorporated into the Treadmills scheme.
“Lidl’s commitment is a major step forward for the project and we believe local residents will welcome the quality, value and additional choice it will offer to shoppers,” said Jonathan Stubbs, head of development at Wykeland.
“This announcement reflects the very strong interest we are seeing as we develop the commercial opportunities available and work with our partners at Hambleton District Council to realise the ambitious vision for this exciting redevelopment.”
Image above attributed to Central Northallerton Development Company.