Pictured left to right are Executive Vice President/Director of Store Operations John Jones, Director of Advertising Drew Hembree, President/CEO Steve Smith and Senior Vice President/COO Jesse Lewis
The Food City grocery chain, based in Abingdon, Va., announced Thursday that it is purchasing 29 BI-LO supermarkets in the Chattanooga area.
The locations include 21 pharmacies.
The locations range in size from 25,000 to 63,000 square feet.
They are East Brainerd Road, Lee Highway, E. 23rd Street, Highway 58, three on Hixson Pike, Signal Mountain Road, Tennessee Avenue, Brainerd Road, two in Cleveland, Dayton, two in Ooltewah, Soddy Daisy, Red Bank, Harrison, two in East Ridge and Etowah.
Georgia locations are Blairsville, Chatsworth, Dalton, Fort Oglethorpe, LaFayette, Trenton and two in Rossville.
BI-LO’s began in 1961, when former Winn-Dixie executive Frank Outlaw purchased a small chain of food stores.
In Chattanooga, BI-LO purchased the Red Food Stores.
BI-LO is based in Greenville, S.C.
Steven C. Smith, Food City president, said, "We are extremely excited to have this opportunity to expand our operation into the Chattanooga and North Georgia market as part of our strategic growth plan. We very much look forward to joining their retail community and serving the region.
"Area consumers can rest assured that we plan to complete the conversion process as quickly as possible, with the least interruption to the normal flow of business."
The company plans to invest over $40 million in capital improvements to the locations during the first year. And while post-acquisition plans have not been completely finalized, Food City anticipates revamping the units and hiring the vast majority of BI-LO’s nearly 2,000 store associates, it was stated.
“We are anxious to welcome the BI-LO associates to our team. We plan to retain their years of service and make the transition in benefits as seamless as possible. We certainly look forward to joining forces to serve the area residents and the community at large,” said John Jones, executive vice president and director of store operations for Food City.
He said, "BI-LO shoppers can expect to find many of the brands and products they currently enjoy, blended with a wide variety of items offered by Food City.
“It’s our intention to enhance the overall variety and selection and further develop the services and conveniences provided to shoppers."
Jesse Lewis, Food City senior vice president and chief operations officer, said, "You are going to love Food City. I am personally pleased to have the opportunity to work with many of my former associates to serve the wonderful people in this area.
Mr. Lewis served a number of years in key positions for Red Food Stores in Chattanooga. He said he is well acquainted with several of the BI-LO locations involved in the acquisition, as they are former Red Food stores.
Company officials hope to finalize the acquisition by early fall.
“We are pleased to be part of providing the consumers in Northwest Georgia and Southeast Tennessee with only the best in food and services. If you enjoy shopping your present supermarket, or if you liked Red Food Stores, you are going to
Food City operates under the corporate name of K-Va-T. It is a privately held, family-owned company.
It has 15 units in Southeastern Kentucky, 27 stores in Southwest Virginia and 62 in East Tennessee.
It also operates 10 Super Dollar Discount Foods.
The Food City banner dates back to a store opened in Greeneville, Tn., in 1918. Then, in 1955, Jack C. Smith, his father Curtis, counsin Ernest and uncle Earl opened their first store in Grundy, Va.
It has grown through purchase of Piggly Wiggly units along with Quality Foods/Food City, White Stores, Winn Dixie and BI-LO.
The firm said each year it buys about $6 million in fresh produce from local growers.