A Supabarn Express is set to open on the site of the former Kingston IGA.
Supabarn confirmed on Thursday the company had leased the Giles Street site for a supermarket, which will open in a matter of weeks.
The new supermarket will be located just metres away from a larger Supabarn site set to open as part of the Atria development on nearby Eyre Street.
A liquor license application has been seen in the windows of the closed supermarket in recent days, showing it will be open between 7am and 11pm.
Supabarn's managing director Theo Koundouris said it's hoped the store will open in the fortnight.
"We felt that the Kingston community needed a quality local supermarket facility. We are aiming to open by the end of the month," he said.
"Supabarn is still very much committed to the Kingston car park site, where it will establish its new Farmer's Market concept.
"We didn't want the community to be without a supermarket until this new store opens."
Mr Koundouris did not say whether the Supabarn Express will operate alongside the larger Supabarn when it opens in 2019.
Supabarn's lease of the site has ended weeks of speculation surrounding the future of the former IGA, after it closed without notice earlier this month.
All IGA logos were removed prior to the store's closing, with customers often complaining about low levels of stock and staples frequently missing from shelves.
Peter Jansen from the Kingston Traders Group has welcomed the move from Supabarn into Kingston shops.
"I think from our view, it's good news for Kingston," he said.
"[The changeover] is done now, which is good. Hopefully the store will be opening there in a few weeks."
Construction workers have been seen inside the closed-off supermarket recently.