Huntsville, Alabama is set to welcome a significant expansion in its grocery retail sector with the arrival of Food City. Approved by the Huntsville City Council, a new development agreement paves the way for multiple Food City Locations, promising to enhance shopping options for residents across the city. This initiative will bring substantial investment and job creation to the Huntsville area.
Food City is committing a substantial $90 million investment to establish six new grocery stores in Huntsville over the next five years. This expansion is projected to generate an impressive 1,350 new jobs, providing a significant boost to the local economy. To facilitate this development and offset infrastructure costs associated with constructing these locations, the City of Huntsville has agreed to provide cost reimbursements, capped at $9 million in total across all six locations, through sales tax revenue sharing. This strategic partnership ensures that the City is projected to recoup its investment within just two years, highlighting the anticipated economic benefits of these new Food City locations. It’s important to note that these reimbursements will only commence once all six stores are fully constructed and open to the public, ensuring a phased and responsible approach to the development.
Food City has a strong reputation as a quality retailer and being a good community partner. They will be an excellent addition to the Huntsville market.
The rollout of Food City locations will occur in two phases. Phase I will see the establishment of stores in three key areas: Hampton Cove, North Memorial Parkway, and U.S. 72 East. These initial locations are strategically chosen to serve existing residential areas and growing communities. Phase II will further expand Food City’s reach, with planned locations near downtown Huntsville, on Alabama 53, and in the County Line Road area. Each Food City location is designed to be more than just a grocery store; they will also incorporate additional retail space available for lease. This aspect is intended to create new, vibrant retail centers within the Huntsville community, offering a broader range of shopping and service options beyond groceries.
Shane Davis, Director of Urban and Economic Development for Huntsville, emphasized the strategic importance of this partnership, stating, “Huntsville’s growth has provided new opportunities to expand our retail offerings, particularly in the grocery sector where some areas are presently underserved. Food City has a strong reputation as a quality retailer and being a good community partner. They will be an excellent addition to the Huntsville market. This partnership allows Huntsville to secure all six store locations planned to service the Huntsville-Madison County market. This is a win-win in that we are able to provide new retail opportunities to areas that need better retail options and the new revenues can be invested back into the community for public infrastructure projects.” This statement underscores the city’s proactive approach to meeting the needs of its expanding population and leveraging economic development to enhance public infrastructure.
VIEW: FOOD CITY PRESENTATION
Food City is operated by K-VA-T Food Stores, Inc., a well-established and privately held corporation that is family and employee-owned. With its headquarters in Virginia, Food City currently operates over 140 stores across a five-state region including Virginia, Kentucky, Georgia, Tennessee, and Alabama. Customers at the new Huntsville Food City locations can anticipate a wide array of amenities and services. These will include full-service grocery departments featuring high-quality produce and a comprehensive selection of goods. For meat and seafood enthusiasts, custom prime departments will offer premium selections. Many locations will also feature popular amenities such as a Starbucks coffee shop, full-service deli and bakery sections, pharmacies for healthcare needs, floral services for special occasions, and fuel centers for added convenience.
Construction for the Phase I Food City locations is slated to commence in May, with the anticipation of the first store opening its doors as early as this fall. This rapid development timeline indicates Food City’s commitment to quickly establishing its presence and serving the Huntsville community with its new food city locations.
