Gordon Rothwell, managing director at James Hargreaves Bathrooms, said: "We have been aware of Lifestyle Bathrooms for some time and we see this as a progressive and positive move into a new geographic area for us."
James Hargreaves Bathrooms is a division of James Hargreaves Plumbers Merchants, which has 27 branches in Yorkshire, Lancashire and the North East.
Mr Rothwell said the premises in Pryme Street will be refurbished with a launch planned for early spring. "We are very confident going forward with this new branch and that is why we have agreed to a large investment at a time when many firms are pulling back," he said.
"Caution has never been our way - we believe in unearthing opportunities and then committing ourselves 100 per cent.
"This is what we will do in Hull and we firmly believe a combination of our financial strength and experience in the market will help this latest venture grow and grow.
"The design and sales team in Anlaby are very dedicated and highly talented and we are more than happy for them to be joining James Hargreaves Bathrooms.
"We are always looking to add to our growing portfolio and Hull represents a very good step forward for us."