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Frozen Value is setting up a 65,000 sq ft warehouse at Dearne Mills near Barnsley, with the creation of 20 jobs.
Frozen Value, the Yorkshire-based chain of 95 Jack Fulton stores, has undergone a management buy-out backed by Yorkshire Bank.
Frozen Value is planning to expand its northern England-based chain of 78 frozen food stores into other parts of England, Scotland and Wales.
Frozen Value is planning to expand its chain of 72 discount frozen food stores in northern England with ten new sites this year.
Frozen Value is planning to expand its chain of discount food stores, having just opened a new distribution centre off junction 38 of the M1.