Tipped to open mid-August, the Beach St premises will be directly opposite brand partner Glassons, and will employ about 10 full-time and part-time staff.
Born in Germany, Hallenstein moved to New Zealand with his family, and by 1864 had opened a general store in Queenstown, followed by stores in Arrowtown, Cromwell and Lawrence.
In 1873, due to the difficulties sourcing quality menswear, the Hallenstein brothers launched New Zealand's first clothing factory and associated store, and were soon supplying retailers around the country.
Following expansion and a merger with women's clothing company Glassons, the company now has 47 stores nationwide.
Hallensteins chief executive Glenn Hunter said the company had been "waiting for the right time and the right site" before opening in Queenstown.
"It will be an amazing opening and Queenstown has a special place in our history, so there's quite a bit that will be new inside. It will be more of a flagship store for us."the premises of about 200sq m would have a special "concept-store" design, but he remained tight-lipped on the specifics.
The store is being constructed on an amalgamation of three commercial sites.
Asked the price of the development Mr Hunter simply replied "it's not cheap".
"It's the same with any store. They are always expensive, but we are going all out with this one, so that will be pretty special."
