Workers were noticed inside the unit that was the former Argos in Ipswich's Carr Street.
The store closed in 2019 when the business transferred to the Upper Brook Street branch of Sainsbury's - and plans were drawn up to redevelop the site with flats and a smaller shop unit.
They were approved by Ipswich Borough Council in 2022, after which it was put on the market by estate agents Whybrows and Connells.
Now workers have been seen inside the smaller shop unit, carrying out some renovations and making space for shelves and isles.
Planning permission was granted for the site to be converted to 17 one-bedroomed flats and a two-bedroom flat on the first and new second and third floors.
The ground floor would be a new shop unit with services at the back including cycle storage - but only two car parking spaces.
Under the new plans for the town centre, Carr Street is now seen as a mixed area with shops and homes.
The building will be opposite the new school which is due to be built on the site of the former Co-op department store.
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