Located on the corner of Fairy Springs Rd and Maisey Place, Countdown Rotorua North will cover an area of 3500sq m and feature 194 car parks.
It is set to employ 100 people, although the company says it is too early to say whether those will all be new positions.
Countdown already has two stores in Rotorua and has said there are no plans to make changes to those.
Countdown property general manager Adrian Walker said the company was delighted to open a new supermarket in Rotorua and expand on its long history in the city.
He said they had been looking for a suitable site for some time and were excited to work with R & B Consultants to develop its first new full service supermarket in Rotorua for many years.
"Countdown has been part of the community here for many years and we have a great team.
The Rotorua district is committed to growth and it's exciting to be part of that and provide further employment and career development opportunities."
He said the new supermarket was set to include the latest design features including wider aisles, energy-efficient fittings and equipment, and a new layout including clothing and kitchenware merchandise.
It will also have a full bakery, service delicatessen and seafood department and offer the "Click and Collect" service where people can order their groceries online and pick them up at the supermarket.
Mr Cook said the firm would design, build and lease back the new development.
He said the Countdown was an important new development for the Rotorua district, particularly on the western side of the city, and comes more than 20 years after his company developed Rotorua's first Countdown supermarket (originally Big Fresh) in Fenton St.
"We certainly feel like we've come full circle."
Mr Cook said Rotorua had changed a lot in those two decades and there was still a great deal of positive change and development to come.
"It's a really exciting time to be here."
He said they would be using local suppliers and contractors, which would make an additional contribution to the economy.
Demolition work was expected to start next month with construction beginning in March.
Big Save Furniture, which is currently on part of the site, is relocating to a new development on Lake Rd, while the SPCA Op Shop is moving across the road.
