$7.6M building permit issued for new Food City grocery store in Athens

A 57,000-square-foot Southern staple is coming to North Alabama.

A key step has been cleared for a new Food City grocery store planned for western Athens, with city officials issuing a building permit for the project earlier this month.

According to public permit records, the permit authorizes construction of the gargantuan Food City, with a construction value listed at $7.6 million.

City records show the Athens City Council approved an economic development agreement for the project in late 2024, outlining an anticipated investment of about $19.6 million and the creation of roughly 200 jobs.

The agreement also includes planned street improvements in the Elm Street and Lucas Ferry Road area, with city officials citing the project as a way to expand retail access in western Athens and grow the city’s sales tax base.

The store is already under construction following an August 2025 groundbreaking hosted by the Athens-Limestone Chamber of Commerce. At that time, company officials said the project would bring a full-service grocery option to western Athens, an area that has seen less retail growth than the eastern side of the city.

Plans for the Athens location call for a full-service grocery store with an in-house pharmacy, fuel station, bakery and deli, as well as prepared food offerings and café-style seating, based on previously released project information.

When the project was announced last year, city leaders highlighted the broader economic impact tied to the development, including infrastructure improvements in the area and increased sales tax revenue.

The Athens City Council approved an incentive agreement allowing the city to reimburse a portion of sales tax revenue generated by the store over a defined period.

The Athens location is part of Food City’s broader expansion across North Alabama and the Huntsville metro area. The chain has opened multiple locations in recent years and announced a long-term investment plan aimed at adding new stores and jobs throughout the region.

The building permit was among the largest issued locally so far this year, according to reporting by Bama Buzz, and the store is anticipated to open later this spring.

Sherri Blevins is a staff writer for Yellowhammer News and 256 Today. You may contact her at [email protected].