NQR plans to trade out of the ex-Autobarn store in Young Street, near Dean Street, from mid-July after entering a long-term lease on the 753-square metre space.

The retailer began in Melbourne in 1987 and has 15 stores across Victoria, including in Ballarat, Bendigo and Geelong.

NQR chief executive Ewan Jones said he was keen to expand and cited Albury-Wodonga's population and lack of discounters as reason to open on the Border.

He added it was hoped a store in Wagga would be ready to trade in spring to help make trucking groceries more viable along the north east route from Melbourne.

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"We'll open with a bit of flair and have some great specials," Mr Jones said.

He said unlike Aldi supermarkets, NQR focused on big name products rather than home brand goods.

There will be 15 to 20 jobs at NQR with a management team of three and the remainder casuals.

The arrival of NQR comes as preparations continue for the opening of food vendor Harris Farms in the old Bunnings site in Young Street.

Incidentally the former Autobarn site was home to another discount supermarket, Half Case, in the 1980s.

The director of Lavington's Discount Grocery Warehouse Craig English has vowed to undercut NQR on the same products they stock.

"I think the people around Albury, they're always better sticking with locals," Mr English said.

"All the money that goes through my shops stays on the Border, all the money that will go through NQR will go back to Melbourne."

East Albury IGA supermarket owner Bob Mathews welcomed the additional competition.

"It means the businesses here will have to sharpen up and do a bit better from what they do," Mr Mathews said.

"It sounds a bit odd coming from a retailer, but the more competition the better."

Leasing agent Corey Findlay, of AW Commercial Real Estate, said there had also been interest in using the premises as an office or for a fitness business.