The former Next shop on Fargate is set to have a roof terrace, kitchen, internal refurbishment and a ‘stunning new facade’.
The revamp is set to finish in October and it could become a restaurant, bank, shop or office the owners say.
The unit, at the corner of Norfolk Row, has been empty for more than a year after Next moved to The Moor.
It is one of 10 out of 40 shops on Fargate that are currently empty.
Jason Adlam, chief executive of building company Harris CM, said the revamp demonstrated ‘continuing confidence’ in Sheffield as a retail centre and leisure destination.
He added: “This project is an impressive addition to our portfolio of projects in the Sheffield area and once again we are delighted to provide opportunities for our workforce and our supply chain, with a significant proportion of both based in South Yorkshire.
“It also complements the wider regeneration happening on Fargate, which is benefiting from a multi-million pound makeover following Sheffield’s successful bid to the Government’s Future High Streets Fund.”
Sheffield City Council recently won £16m to revamp Fargate and High Street.
In September, David Woodhead, of Woodhead Investment & Development Services which owns the unit, said: “We think Fargate is still a good position despite The Moor attracting interest recently.
“I think Fargate will revive, especially from M&S up to John Lewis. The top end is busy still.
“It’s necessary to bring the building back into a modern specification and make it look as good as possible, we want to be attracting better operators.”
Earlier this month, Sheffield City Council announced it would press ahead with the first of three schemes to attract visitors using Future High Streets Fund cash.
Work will start on clearing “clutter” and bringing in new greenery, seating and lighting.
The second plan is to transform a vacant building into Event Central, with a year-round programme and space for exhibitions and events, a cafe and flexible workspace.
Thirdly, the council wants to work with landowners to open up direct front door access to upper floors of buildings so they can be converted for new uses.