PART of the old shopping arcade on Little London Walk has been demolished in preparation for a single unit shop to take its place.
The development, which was given permission in 2013, is rumoured to become home to a TK Maxx store.
But the store has not confirmed if it intends to move in.
Johnny de Lisle, director of the site owners PMB Holdings, has said: “We have worked hard to find the best way of revitalising the building to encourage more shoppers in and provide jobs.
“This planning decision has secured a positive future for Little London that will help regenerate this part of East Street and boost Chichester as a shopping destination.”
The plans received several objections on the basis the build would be replacing 19 units with one large shop. Seven stores were open in the old arcade including Chives, Zig Zag and Cake Fayre.
The plans originally sparked a petition which nearly 800 people signed to save the site as a hub for small independent businesses.