Poundland is set to move into the former New Look in Lancaster city centre.
The discount retailer will open in the Marketgate premises formerly occupied by the clothing store, later this month.
New Look closed in Lancaster in September.
Read more: New Look clothes store in Lancaster announces closure - Beyond Radio
A spokesperson for Marketgate said they were "delighted to have signed Poundland to replace New Look in the 22,000 sq store...with Poundland upsizing from their existing store in the city to agree a new 10-year lease".
The spokesperson said Poundland would be a "great footfall driver for Marketgate".
Poundland will be relocating from its store in Lancaster at St Nicholas Arcades shopping centre. Beyond Radio has contacted Poundland and St Nicholas Arcades for comment.
In 2022, Poundland moved its store in the Arndale shopping centre in Morecambe to a new bigger premises in the former Home Bargains/Tesco.
Read more: Poundland to move into bigger unit in Morecambe Arndale Centre - Beyond Radio
Poundland's arrival in Marketgate follows news that Mountain Warehouse outdoor clothing retailer will move to the shopping centre, relocating from just a few doors down Market Street to the former MyLocal/HMV unit at the gateway to Marketgate.

Read more: Outdoor clothing store to relocate to former Lancaster supermarket - Beyond Radio
Mountain Warehouse has also signed a 10-year lease, at 17-19 Market Street.
The new store will feature a range of outdoor clothing and equipment, designed for activities such as hiking, camping, skiing, cycling, running and fitness.
A new sushi restaurant and takeaway, Sushi Cat, will also open in Slip Inn Lane with a new six-year lease.
Marketgate said they had also agreed new leases with the Meet the Makers and Designer Clearance stores, saying both had "committed to longer lease terms, reflecting positive trade over the past year".


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