Food City starts construction on new grocery stores in Alabama and Tennesse

USA – Supermarket chain Food City has announced it has started construction of two new grocery stores in Alabama and one in Tennessee, expanding its presence in the South Central US. 

The two locations in Alabama aim to expand the supermarket chain’s presence in Huntsville and Madison County. Food City has announced plans to construct four more locations in the region. 

The new 32,000-square-foot and 52,000-square-foot stores will be located on Governor’s Drive and Memorial Parkway NE. 

Steven Smith, Food City CEO, said, “We’re excited to be joining the Huntsville retail community and look forward to creating quality jobs and tax revenue for the Huntsville and Madison County residents.” 

Meanwhile, the 55,000-square-foot location in Tennessee will be in Able Drive. This new location will replace the current Market Street location.  

The three facilities are expected to be open to the public in the first quarter of 2025. 

The three grocery store locations are expected to provide premium services- in-store bakery and deli, complete with a hot food bar; a café seating area and fireplace; an Asian wok; a fresh food bar offering a variety of soup, salad, and fruit selections; a hickory wood smoker; a pizza oven; and fresh sushi. 

The company predicts the new facilities will increase sales volumes at a CAGR of up to 5%. 

Smith also reiterated the company’s objective of increasing square footage by 3-5% every year in the US. 

Smith said, “Two things happen when you meet that goal: You can continue to provide good opportunities for people in your company that are looking for growth, and we can fund most of our growth through cash flow.” 

In addition to these new locations, the company is renovating 20 stores in the US to revamp its retail outlets.  

Food City plans to open six and four new stores, replacing two older stores.  

The current expansion strategy slightly changes from the previous acquisition strategy to accelerate growth. 

The company is currently valued at US$3 billion, and employees own 13% of this valuation. 

This deliberate ownership strategy is meant to encourage employee engagement and participation.  

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