New Food City Planned for Lenoir City

ABINGDON, VA (Tuesday, May 13, 2008) - Food City officials recently announced plans to construct a new 44,000 square foot superstore in Lenoir City, TN. The location will serve as a replacement for their existing unit and is scheduled to open this fall.

"We have certainly enjoyed serving the Lenoir City area residents and we're very excited to bring a new state-of-the-art Food City to The New Market at Town Creek development," said Steven C. Smith, Food City president and chief executive officer. "Our existing location will close immediately preceding the new store opening. We anticipate hiring around 75 new associates and of course our current team of associates will be transferred to the new location as well."

The project is part of a new 225,000 square foot shopping center, The Market at Town Creek, to be constructed just off I-75 and Highway 321. Food City will be the first retailer to open within the center. Local retailers, a national soft goods, national office supply and national pet retailer are currently being targeting to lease the remaining spaces.

"Town Creek will make a huge economic impact on Lenoir City and Loudon County," said Lenoir City Mayor Matt Brookshire. "It will bring in more property and sales taxes, and entice more visitors to our community."

"We are looking forward to adding a unique blend of national, regional and local retail tenants, as well as numerous jobs to the city with this development," said Brad Shoemaker, Director of Marketing for Roswell, GA based Mimms Enterprises, lease holder for the development. "People will have the conveniences of a big city in a small-town setting."

Plans for the new Food City include: Bakery/Deli, complete with a Hot Food Bar and Sit-Down Café; Food City Floral Boutique, offering a large assortment of fresh-cut floral arrangements, bouquets, gift items and staffed with a floral designer 7 days/week; Video department, stocked with the latest releases and classic favorites. Full service Seafood and Meat Departments, with in-house meat cutters on staff to hand cut steaks and fresh meat to order will be available, in addition to a wide variety of pre-marinated and seasoned oven ready products and a complete selection of top quality meats that are all-natural with no solutions added, including Certified Angus Beef. Expanded Meat, Grocery, Frozen Food, Produce, Health & Beauty Care departments and an in-store bank will be included as well.

The location will also offer the added convenience of a Food City Pharmacy, where a registered pharmacist will be on hand to meet prescription needs and answer health related questions. And, customers can stop by the Food City Gas N' Go for top quality gasoline at highly competitive prices.

"Our shoppers can count on the same top quality products, courteous service and competitive pricing they have come to expect from Food City, with added selection and services," says Mike Sexton, district manager.

Customers will be able to move quickly through the checkouts, thanks to seven traditional lanes and an express lane. The store is also equipped with four self-checkouts, allowing customers to scan their items and pay for their purchases unaided, should they wish to do so. And the unit has been outfitted with a new exterior and interior design concept, including open ceilings, department coordinated floor tiling, large department signage and a new store-wide color scheme.

"The location's enlarged departments will allow for enhanced variety and selection and greater ease maneuvering through the store," commented John Jones, executive vice president store operations. "Our customers are really going to enjoy shopping this new state-of-the-art facility".

Headquartered in Abingdon, Virginia, K-VA-T Food Stores operates 96 retail food outlets throughout the tri-state regions of Southeast Kentucky, Southwest Virginia and Northeast Tennessee.

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