Co-op is to create around 250 jobs at 20 new stores as part of an £11 million investment.
Sites are planned in Edinburgh, Gretna, Alyth and other towns and cities across Scotland.
Management said the investment will increase the number of Co-op employees across the country to more than 5,700, and the announcement comes on the back of figures showing year-on-year sales growth.
Co-op opened 15 new stores during 2016.
Divisional managing director John McNeill said: “2016 has already seen us grow our footprint right across Scotland with major new stores opening in areas such as Bearsden, Kirkcaldy, Laurencekirk and Peterculter.
“Our long history of investment here, coupled with our plans for 2017, reaffirms our commitment to Scottish communities the length and breadth of the country.
“Consumer habits are changing and we know that shoppers simply want to buy what they want, when they want. With a store in every postal area, we’re conveniently placed to serve the needs of today’s consumers whether they’re in the Highlands and Islands or the busy urban centres of Edinburgh, Glasgow, Dundee and Aberdeen.
“We’re investing in our people and our products so that our customers can rely on a consistently great in-store experience.”