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Grocery chain Food City expanding into Huntsville market

Huntsville city leaders announced $9 million in incentives for the chain's first six locations in the area.

HUNTSVILLE, Ala. — There will be a new name joining those of Publix, Kroger, Aldi, Walmart, Target, and Star Market when it comes to grocery stores in Huntsville. The city announced a deal with Virginia-based Food City, which will open six stores in Huntsville and vicinity. The chain currently has one location in Albertville, which opened in 2021.

According to a statement from the city, Food City will invest $90 million for the six stores. The first three announced locations include Hampton Cove, North Memorial Parkway, and U.S. 72 East.

Following the completion of those stores, a second wave will be built near downtown, on Alabama 53, and on County Line Road.

Exact locations will be announced at a later date. An estimated 1,350 jobs will be added to the Huntsville economy.

Each Food City store will have a full-service grocery, custom prime meat and seafood departments, a Starbucks kiosk, deli, bakery, pharmacy, and floral departments. Some locations may also include a fuel center.

The stores will also anchor space for additional retail development.

“Huntsville’s growth has provided new opportunities to expand our retail offerings, particularly in the grocery sector where some areas are presently underserved,” Shane Davis, Director of Urban and Economic Development said. “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 city has offered Food City's parent company, K-VA-T Food Stores, Inc., up to $9 million in cost reimbursements for the six stores after their completion and opening. That money will be reinvested in community or public infrastructure projects.

The first Food City store in Huntsville is planned to open later this fall.

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