Poundland in Stroud is due to close this summer when work begins on a new £6.5m medical centre.
The store will close in August to make way for the new surgery.
The Poundland premises, formerly Woolworths, in King Street will be refurbished and partially rebuilt in the development process.
The project will create a new £6.5m town centre location for two GP surgeries as well as a pharmacy and additional space for a range of other complementary health and service providers.
Construction work is due to start in the first week of August and the main building work on the new surgery is scheduled to be completed in August 2022, ready for opening in the autumn.
The medical centre will be home to Locking Hill Surgery and Stroud Valleys Family Practice – both practices have outgrown their current surgery buildings and the new development will give them room to grow.
The extra space in the new building will also allow the practices to extend the range of services they provide, expand training opportunities and support patients with complex needs who require more specialist treatment.
The new medical centre will provide GP services for more than 15,000 patients.
Patient parking will be available at the multi-storey with access from the King Street entrance or by the lift from the top floor of the car park.
A spokesman for Poundland said: “Our lease on the Stroud store is expiring and the landlord has other plans for the property.
“We’re sad to be going and it goes without saying that when we close a store we always work hard to look after colleagues directly affected.”
The planned closure date is August 20.