A new multi-million pound distribution centre for Poundworld will create hundreds of jobs.
The discount retailer will build a 524,000sq ft site next to their offices on Normanton Industrial Estate.
And the centre will create 300 new jobs during the next three years.
It is part of Poundworld’s expansion plans, which will see 200 new stores open around the country in the same period, creating more than 3,500 jobs.
Building work on the new distribution centre will start later this summer.
And the facility is expected to open by autumn 2016.
The warehouse will distribute products to more than 280 stores across the country.
Poundworld chief executive Chris Edwards said: “Our new centre will improve efficiency and allow us to offer our customers even more amazing products, increasing the variety in our stores.
“It is an exciting step forward for us and we look forward to providing further jobs in the Yorkshire region and in other areas across the UK that will be home to new Poundworld stores.”
Mr Edwards started the company on a Wakefield market stall in 1974 and his family opened their first high street store in 2004.
The family firm now has more than 280 outlets, as well as 50 Bargain Buys shops.
Coun Denise Jeffery, Wakefield Council’s cabinet member for economic growth and skills, welcomed Poundworld’s decision to expand.
She said: “We are delighted they have decided to build a new centre in the district with 300 new jobs, which it needs.
“I really hope it will start encouraging more businesses to expand across the area, bringing new jobs.”