The project in Talbragar Street was planned to provide 20 Dubbo residents with work during the construction stage, ALDI Australia reported.

The first local contractors have been hired by the company appointed to turn the once-disused rail yard into a new shopping option for the city.

An ALDI Australia spokeswoman confirmed Streetbuild Constructions, whose banners have adorned the site's perimeter for weeks, had been appointed to construct the new Dubbo store and began work in early March.

Currently soil had been brought on site and a retaining wall built, she said.

Assembly was on schedule, she said as she anticipated timeframes.

"Depending on weather and unforeseen delays, we expect construction to be completed by mid-September and once specific details on construction are finalised, we will be in a better position to communicate the expected opening day," she said.

Baulkham Hills-based Streetbuild Constructions lists ALDI, Woolworths, David Jones, McDonald's and Dan Murphy's stores at locations across NSW and the ACT among its recent projects.

A $1 million extension of an ALDI store at Lithgow was completed in 13 weeks, according to the construction company's website.

It had an outcome in mind when choosing its workforce for the Dubbo project.

"Streetbuild is employing local contractors from the area to support and help boost the local economy," the ALDI Australia spokeswoman said.

"Currently, the first batch of contractors has been hired with a plan to hire a total of 20 Dubbo residents for the construction works."

ALDI's development application lodged last year slated the creation of up to 20 retail jobs with the opening of its doors at Dubbo.

The German-based chain began recruiting earlier this year, receiving applications from more than 150 Dubbo residents.

Dubbo consumers have long cried out for the retailer known for its bargains and it is all set to respond.

"The new store will provide the Dubbo community with the opportunity to experience ALDI's shopping innovations and high-quality exclusive brands at permanently low prices," the spokeswoman said.