The proposed retail transformation of the Woollen Mills has secured strong local backing, with the project hailed as a vote of confidence for the rural city’s economic future.

The major development, which will see the landmark Textile Avenue site repurposed into a 15,000 square metre large format retail (LFR) precinct known as the Wangaratta Woolstores, is currently working its way toward the planning pipeline.

Rural City of Wangaratta Mayor Irene Grant said the scale of the proposal demonstrated that the regional hub as an increasingly attractive prospect for major investors.

“Council looks forward to working with the developer as this proposal progresses through the required planning process," she said.

"The proposal demonstrates market confidence in Wangaratta as an investment destination.

“Projects of this scale have the potential to broaden local retail choice, support job creation, and reinforce Wangaratta’s role as a growing regional centre."

Cr Grant said the development would give North East residents greater access to major household retailers closer to home, limiting the need to travel out of the municipality.

Garry Nash & Co Real Estate director Garry Nash, whose agency acted in conjunction with Colliers Retail Middle Markets on the off-market sale to national developer Accord, said the project will cement the city as a premier regional destination.

“With all of our current growth and development in residential and industrial, this potential mega-store development is really something that will set the city up for many years into the future,” he said.

“When you start to analyse it as a ratepayer and someone living in the rural city, you have to think the place is in a good place of controlled growth.”

Mr Nash said the recent growth and expansion of prominent local businesses like McPhails and Cannys were prime examples of Wangaratta's current upward trajectory.

He said he expected the development to complement, not diminish, existing shopping strips.

“It’s not going to fragment our current retail areas too much and it’s keeping it all fairly tight in proximity,” he said.

Recognising the deep local history of the 1923 site, Mr Nash said protecting the character of the former Woollen Mills would remain a core priority as the project advances.

“They’ll be doing a lot of work with our planners to ensure that history is retained to a large degree,” he said.

While the project is set to be anchored by a 5000 square metre Harvey Norman showroom relocating from Murphy Street, the remaining 10,000 square metres will offer a diverse mix of showroom tenancies ranging from 600 to 4000 square metres.

The Colliers Retail Leasing team is securing pre-commitments from national and regional brands, with Garry Nash & Co set to assist when required.

“If local businesses wish to participate in relocating to that location, it’s certainly available," Mr Nash said.

“Anything that will help create employment, bring people to our city, that’s what we need.”

Pending the formal council planning process, construction on the hub is slated to begin mid-next year, with a grand opening targeted for 2028.