Saturday, June 09, 2007
Kroger plans mega store in Bonsack area
Kroger officials said site preparation should begin this month; construction will start in the fall.
A giant in the grocery business plans to spread its footprint into a growing area of Roanoke County.
Kroger officials said Friday that the company will build its largest Roanoke Valley store on a 22.8-acre site at the corner of Valley Gateway Boulevard and U.S. 460 in the Bonsack area. The 84,000-square-foot store will offer a gas station, as do some other Kroger stores.
The Cincinnati-based chain is pumping $22.4 million into the development of this grassy site, which is near Integrity Windows, a large manufacturer of windows and doors that opened several years ago.
Other retails shops and restaurants are planned adjacent to the new store. Four additional outparcels, for lease or for sale, would front U.S. 460.
Kroger will own the retail center, having purchased the land from Fralin & Waldron, a Roanoke real estate company. No tenants have yet been named for the additional retail spaces at the proposed center.
Site preparations should begin this month, with actual construction starting in the fall, Kroger said.
The grocer, which ranks No. 2 nationally in grocery sales next to Wal-Mart, chose a busy location for what will be its 14th Roanoke-area location, including its store at the Westlake Towne Center in Hardy.
Doug Chittum, the director of economic development for Roanoke County, said there continues to be growth in residential building permits in this part of the county, and it's similar to demand for housing in south Roanoke County.
"This whole corridor [in Bonsack] is really seen as a growth area," Chittum said.
Roanoke County already has received approval to add a three-way traffic light at the corner of Valley Gateway Boulevard and U.S. 460, Chittum said, after traffic counts were conducted.
Along with feeding customer demand, the proposed Kroger is estimated to generate about $1.5 million in local and state taxes annually, said Pete Williams, president of Kroger's Mid-Atlantic region, which is based in Roanoke.
Kroger officials have not yet decided whether to close an existing Kroger at King Street in Roanoke, which is about one mile from the new Kroger site, said Carl York, a spokesman for the retailer's Mid-Atlantic office.
The latest Kroger to open in the area was the store at Cave Spring Corners in Southwest Roanoke County. A Kroger had been at the shopping center since the '70s. But after remodeling or expanding the store proved unfeasible, Kroger decided to move it to another location at the shopping center. The store measures approximately 60,000 square feet, and it opened in 2005.
The new Bonsack Kroger, however, will stand as the chain's flagship store in the Roanoke area, he said.
It will house its newest amenities, such as an olive bar and a cheese shop, York said.
These kinds of upper-scale additions are defining a number of national grocery retailers and helping them compete with Wal-Mart, Costco and other discounters, some industry executives have said.
More specialty grocers are emerging, both nationally and in the Roanoke Valley, and most offer high-end food choices. In this area, they include Fresh Market, which opened in Roanoke in 2005, and Ukrop's Super Market, which is slated for Roanoke this summer.
"They take the chore factor out of grocery shopping," said Gary Rappaport, the president of Rappaport Cos. in McLean, during an International Council of Shopping Centers meeting last week in Roanoke. Rappaport Cos. owns Roanoke's Towers Shopping Center.
The new Roanoke County Kroger also will be built with a focus on energy conservation.
The store will have skylights to draw natural sunlight and conserve energy. It also will use computers to regulate refrigeration, air conditioning, ventilation and heating. About 35 percent of the store's outdoor space will be used for trees and other landscaping features, Kroger said.
Green development is another trend in the retailing industry. More large chains, including Wal-Mart, are seeking ways to conserve energy and green space while building new locations, Rappaport said.
The first Roanoke Valley Kroger opened in 1929. The chain has grown to become both a national and a local grocery power.
With sales of $61 billion, Kroger ranked second in the nation in sales for 2006, according to the Food Marketing Institute.
Kroger employs more than 1,300 people in its Roanoke-area stores, and an additional 150 in its local Mid-Atlantic region office.




