The approval by Stoke-on-Trent City Council will see Screwfix's distribution centre in Trentham double in size.
The £18m investment will see the facility at Trentham grow from 320,000sq ft to 630,000sq ft and will comprise warehouse space, offices and enclosed loading facilities.
This new distribution centre will create 107 full-time jobs and safeguard the 430 current positions. It is hoped that in the future 200 further positions will be created.
The existing distribution centre opened in Trentham in 2004 and Screwfix's director of supply chain, Richard Sutcliffe told the Stoke Sentinel the business moved to the business park because of the area's strong road connections, which play a vital role in ensuring customers receive their orders on time.
He added: "Screwfix has continued to go from strength-to-strength over the last 12 months. We strive to continually evolve our innovative and multi-channel retail model to ensure it provides high-quality products as conveniently as possible for busy tradesmen on the move.
"Our industry-leading next-day delivery service has played a central role in this offering, so we are delighted to be able to further enhance the service."
Developer St Modwen will oversee the project and senior development manager, Euan Lindsay added: "The decision to expand the Screwfix facility at Trentham Lakes highlights the success of the existing facility and Kingfisher's confidence in the location of both Trentham Lakes and Stoke-on-Trent for logistics operations.
"We look forward to continuing to work with Kingfisher to bring forward these plans, which will not only safeguard jobs, but bring about further employment opportunities in the area."
Work on the centre, which will support next-day delivery for Kingfisher's Screwfix and B&Q, will begin in August and is expected to be completed by next summer.
This investment forms part of Screwfix's expansion programme, which has already seen its UK network swell to 344 stores.