The Daly family is planning to extend its supermarket in Koroit by up to three-and-a- half times its current size.

The store today is 420 square metres. Plans are to increase the size up to 1500 square metres.

Daly's IGA partner Mick Daly said the development was a multi-million-dollar investment that was long overdue.

The expansion would also boost employment in the town with Mr Daly expecting the current 29 jobs to double, and grow further in the future.

As part of the expansion it was expected there could be up to 70 new off-street parking spaces created for the bigger store.

Dalys own the properties at 140 and 144 Commercial Road which adjoin the supermarket located at 150 Commercial Road.

Mick and Peter Daly met with the Moyne Shire economic development committee last week and presented a development concept proposal.

They are in the process of engaging an architect and are hoping to begin applying for planning permits to get the project going within the next few months.

The family believes it could take 15 to 18 months for the building process to be completed.

While most of the space would be taken up by the supermarket, Mick Daly said there was a possibility of speciality shops being incorporated in the new development.

Mr Daly said the families were excited about what lay ahead.

"This is something Koroit deserves as a town because it has some really nice steady growth that we think we can cater for," Mr Daly said.

"And our staff and customers are so loyal and they have deserved an upgrade for a long, long time so it will be great to do this for them.

"We had a really positive response from our presentation to the council. They were very supportive. There is always a risk involved in such a big investment but we believe this will serve Koroit well for the next 25 years."

Mr Daly and his brother, Peter, run the family business which also includes IGA supermarkets in Portland and Heywood.

The Dalys have run the supermarket at the current site since 1916 when Mick and Peter's great-grandfather, Michael Daly, and his family arrived from the small town of Berringa, near the Ballarat goldfields.

The Koroit store is the smallest of the three with Portland employing 118 people and Heywood 51.

Disaster struck in April 2012 when the Portland store was destroyed by fire but by the end of January 2013 the rebuild was complete and the store re-opened.

This rise from the ashes was rewarded with the Portland store named as the IGA national retailer of the year in 2014.

abrady@fairfaxmedia.com.au