Proposals have been given the go-ahead by Hartlepool Borough Council planning department to carry out the work at 60-64 Lister Street.
Submitted by Dan Burley, from Park Interiors Northern, plans state there are no other similar DIY bathroom and tile shops in that part of the town currently.
A report from council planning officer Stephanie Bell confirmed the approval, adding the development should have no negative impact on the area.
She said: “It is considered that the proposal would not result in any significant adverse impacts upon the visual amenity, neighbour amenity, highway safety, or any other planning matter.
“Furthermore, the proposal would bring a vacant building back into use.”
The site was previously home to four flats and the proposals will see one two-bed flat remain on the first floor.
According to planning documents, the store will be able to open between 9am and 5pm Monday to Saturday and 9am until 4pm on Sundays and bank holidays.
The development is to feature one full-time job and one part-time role and will see the building refurbished, according to planning documents.
A sequential assessment previously submitted on behalf of the applicant said the proposals will benefit residents and the surrounding area.
It said: “Granting permission for this retail outlet, rather than detract from the town centre, should enhance the area by attracting customers to stay and purchase in Hartlepool rather than outside the area.
“The retail outlet will provide employment, enhance a derelict building and help to keep Hartlepool’s retail economy vibrant.
“Given there are no other DIY bathroom and tile supply shops within the town centre presently we would not detract from the current footfall or viability of the town centre.”
The proposals also received support from two residents, with one from Flaxton Street stating the development is “long overdue”.
A Newlands Avenue resident added: “I think it would be an excellent idea to renovate the building and make something of it and transform it from the wreck it is at the minute, it will improve the appearance of the area massively.”
Although no parking will be provided for customers, council officers noted there is pay and display parking within walking distance.