Food City Breaks Ground for New Supermarket in Chattanooga

Economic Progress and Growth in Chattanooga

In an exciting move for local consumers, officials of Food City, the leading supermarket chain in the Chattanooga area, commenced construction of a new outlet on Lee Highway. The ceremonial groundbreaking, held on Thursday, June 6, 2024, marked the beginning of the construction project perpetuating local economic progress and symbolizing the city’s growing retail sector.

The new supermarket, expected to open in the spring of 2025, replaces an older store in the city’s rapidly expanding region and reinforces Food City’s significant contribution to the local economy, having invested an estimated $110 million since its first foray into the market a decade earlier.

Boosting the Local Economy and Creating New Jobs

The 56,000-square foot store will be located on a 6.5-acre woodland lot alongside the Tennessee Baptist Children’s Home just past Highway 153. Food City’s CEO, Steve Smith, states, “We anticipate a more diverse and expansive selection in comparison to the current store.” The company’s top-man also announced that the supermarket, which is projected to incur costs of up to $17 million, would bring an additional 75 jobs increasing the workforce to 165 employees upon its opening.

Further enhancing the establishment’s offerings, it will also feature a Starbucks café, a Tennessee Valley Federal Credit Union branch, an in-store bakery and deli, fresh food bar, and a comprehensive meat and seafood department. An added bonus for customers will be the provision of a Gas ‘N Go fueling station.

Anticipated Impact on Area’s Growth

City Council member Carol Berz lauded the decision during the ceremony, referring to the new development as a “wise decision” due to the area’s growth and referred to Food City as “a vital player in the city.” The location of the store next to the Tennessee Baptist Children’s Home adds on another layer of significance to this project.

Greg McCoy, president and treasurer of the Tennessee Baptist Children’s Homes Incorporation, in an earlier communication mentioned the potential reassessment of the facility’s land usage, citing maintenance challenges. This evaluation seemed to coincide seamlessly with Food City’s plans, contributing positively to the overall development strategy of the city.

Reinforcing an Effective Growth Model and Expanding the Retail Landscape

The event also saw Todd Fortner, the Tennessee Valley Federal Credit Union’s CEO, reveal the companys’ ambitious expansion plans. The new store will host the seventh Food City branch and by the end of the next year, the number will increase to ten, fostering a remarkable convergence of groceries and banking, thus creating an “unbeatable one-stop destination.”

Adding further recognition to this initiative, Ben Cairns, vice president of membership at the Chattanooga Area Chamber of Commerce, paid tribute to Food City’s practice of promoting from within the company, reflecting the supermarket chain’s commitment to staff development, local employment, and broader economic growth.

It is clear that this project is not merely another supermarket, but rather, it is about economic growth, job creation, and community development. It fundamentally reinforces the message that Chattanooga is a vibrant, growing city and a sound investment destination.