The homewares shop is undergoing a completely new fit out, more than doubling its floor space. It has leased the adjoining premises, previously occupied by Matchworks, and knocked out the wall, to increase its floorspace from 264 square metres to more than 800 square metres.

Leasing and managing agent John Ryan said it was a wonderful asset for the city and great to see the national retailer taking such a large footprint.

"From the owner's building point of view, and Adairs for the fit out, it's a million dollars plus," Mr Ryan said. "They've got a lot of faith in the city. Adairs has been here ten years and this just justifies how much they're regarded in this region."

He said the larger store, and the return of House to Liebig Street, would attract shoppers and "reduce the leakage of retail spend to other areas."

"It's a brilliant outcome after what the community has been through. To have these national brands making the statement that they are, it means that Warrnambool's commercial area is strengthened significantly."

Adairs marketing assistant Lachsley Parton said the works were due to be completed September 10 and the store would stock a larger product range, including its Adairs Kids offering.

She said it was a result of the high demand it was seeing which "presented the opportunity to give our regional customers a new refreshed store and range similar to the Adairs metro stores."