A landmark roundabout and lamppost will be removed as part of redevelopments to Chorley town centre.
Ahead of the build of the new Asda superstore, Market Street will undergo a £1 million revamp.
A 33-week programme of improvements is planned for the southern end of Chorley town centre.
The plans will see Chorley’s iconic ‘Big Lamp’ relocated to a landscaped area nearby.
The roundabout will also be removed and replaced with a more pedestrian-friendly traffic light junction – which will allow crossing points for pedestrians and bicycles.
Coun Alistair Bradley, leader of Chorley Council, said: “We’ve been putting pressure on developers for some time and we are glad that work has now begun to build the new Asda supermarket.
“Improvements being made will vastly improve the public highway on Market Street to coincide with the construction of the store.
“The new supermarket will create up to 400 jobs which will be a major economic boost for the borough – along with the creation of additional short stay car parking spaces that will have strong pedestrian links to the town centre and will in turn bring in more trade for businesses nearby.”
Coun Bradley added: “Unfortunately, there will be some disruption to traffic but diversions will be well signposted in advance and work will be done in phases in order to minimise interference.
“I urge everybody to be patient as it will be worthwhile for the end result and in the meantime all businesses will be open as usual throughout the construction period.”