Home Bargains, one of the UK's fastest growing retail chains, is the shop front trading name of Liverpool-based T J Morris Ltd.
It stocks a wide range of high street brands, from health and beauty products to household goods, clothing, toys, games, food, drink and alcohol.
Its arrival will be welcomed given the widespread sense of doom and gloom which followed the closure of Woolworths, with the loss of 29 full and part-time jobs, just after Christmas.
At the time, retailers voiced concerns about the impact on the town centre of one of its prime sites being empty.
Coun John Robertson, himself a shop owner, said: "It's positive news because it will increase footfall on the high street.
"The closure of Woolworths and the Co-op had greatly reduced choice so anything that increases what's on offer to shoppers is good news.
"It's also targeting people on lower incomes so therefore will benefit the majority of the local population.
"It could also be good news for the Woolworths staff who lost their jobs," he added.
Berwick Borough Council town centres manager, Neil Brown, said the move showed there is still demand for high street property.
"The speed with which the lease had been sold demonstrated the strong demand for high street properties in Berwick-upon-Tweed," he said.
"We probably will see other vacancies happen throughout the town during this recession but as long as there is demand to fill these vacancies and a quick turnaround by the landlords, developers and whoever owns the property, we can retain a healthy and vibrant town centre."
The news was also welcomed by Berwick MP, Sir Alan Beith, who added: "I am delighted to see the Woolworths premises being brought back into use so quickly and wish the new business luck."
Berwick Jobcentre Plus has reported a 'steady flow' of enquiries about the job opportunities on offer.
"People have been coming in to find out about the jobs, although a lot of people submit their own applications through the internet so it's difficult to say how many," said a Jobcentre spokeswoman.
"After talking with the company, the impression I have is that it is still at its early stages but it's good that a site in a prime position is being taken up with jobs created."
Dundee-based Primero Contracts began work on fitting out the interior of the store on Monday. Home Bargains' nearest stores are in Cramlington and Whitley Bay, although it has also bought the empty Woolworths store in Galashiels.
It already has over 140 stores but it has ambitious plans to increase this number to 500 over the next ten years, employing over 10,000 staff.
However, the good news was soured slightly when shoe shop chain PriceLess, which has a store on Marygate, went into administration on Monday.
PriceLess is owned by Bradford-based Stylo. The parent company is not in administration, but its shares have been suspended. Administrators from Deloitte said the shops had not been closed and were continuing to trade as normal.