The construction of the new Bunnings store will create over 150 jobs during construction and 100 permanent jobs for Tasmanians when the store is operational.
Ms Giddings said the store was a clear sign of confidence in the future of retail in Tasmania.
"This is a welcome boost to not only employment in the region but also to the retail sector and this major new development will also have flow on effects to other businesses in the area.
"At a time when conditions in the retail sector remain tough, it is encouraging to see a national leader in Bunnings investing in Tasmania."
Ms Giddings said Tasmania had recorded $4.5 billion million worth of private investment in the past 12 months, with a long list of major construction projects currently underway.
"Forecast investment in the engineering and construction sector was $758 million in March, which represents a massive increase of 81 per cent for the quarter and is one of the strongest results on record.
"This is a strong sign that conditions in the Tasmanian economy are improving and it should provide a confidence boost to the construction sector,” she said.