The store will be on the site of Habitat’s store on Kensington High Street, opposite Whole Foods Market’s debut UK store.
TK Maxx traditionally favours more secondary locations and has several stores on the outskirts of central London, such as Hammersmith and Wood Green.
Homewares retailer Habitat will close its store on March 2, following an evaluation of its portfolio. It will transfer to a store at nearby shopping centre Westfield London when the scheme opens at the end of this year.
A Habitat spokeswoman said the Westfield London store will include a broader range of products, as well as added benefits such as ease of access and car parking. The new scheme is expected to hit Kensington High Street hard.
TK Maxx has central stores in other cities, such as Manchester and Nottingham. Last week, it signed to open a store in central Leeds. The retailer is also due to bring its Canadian HomeSense fascia to the UK this year.
TK Maxx declined to comment.