Natural foods grocery store headed for Hixson

photo Bo Gilliam mixes mortar as construction continues on the new Harvest Grocery store in Hixson on Monday.
photo Construction continues on the new Harvest Grocery store in Hixson on Monday.
photo Planned Hixson grocery store.

A group of Chattanooga investors is staking out a place in the growing natural foods business with plans to put in a new Hixson grocery store with an organic focus.

Harvest Grocery is slated to open next spring in a revamped former Bi-Lo store on Hixson Pike near Adams Road in a $5.5 million project, said builder and investor Tim McClure.

"Hixson is an under-served area for natural and organic foods," he said.

The owner of McClure Construction Co. said there's not another of that type of store on the Hixson side of the Tennessee River except for Whole Foods, which is miles away on the North Shore.

"It's a great fit for the needs of Hixson," he said about the planned 30,000-square-foot store that will have about 50 employees.

Plans are to use a lot of foods grown by farmers in surrounding counties, with the store offering a variety of fruits and vegetables and gluten-free products, McClure said. It also will offer an eatery bar inside and have an outside dining area, he said.

About 9,000 square feet in the building will hold other shops, he said. The owner of Nooga Paws Pet Store is looking at another store, McClure said.

A Chattanooga physician and an investor, Dr. Charles Crump, plans to be at the site one day a week to help educate shoppers on diet and health issues, McClure said.

City Councilman Chip Henderson said he's encouraged the new business is reusing an existing commercial building.

"That's something we've become concerned about," he said about empty shop space in the Hixson area.

U.S. organic food sales are expected to increase by up to 11.5 percent in 2014 and 2015, according to the Specialty Food Association. Total specialty food sales in 2013 topped $88.3 billion, the association said.

Organic produce sales are set to rise 15 percent, and more than 10 percent of produce sold in the U.S. is now in that segment, figures show.

Last year, sales of organic foods hit $32.3 billion, the association reported, accounting for 4 percent of the $760 billion food industry.

McClure said he and his partners, which also include Michael Case, purchased the former Bi-Lo property and are currently renovating the store for the Harvest Grocery.

They like the location, he said, noting there's a traffic light on Hixson Pike and several ways to enter and exit the store property.

Henderson cited the health of the Hixson market, noting that retail dollars had been leaving the area for other parts of the city.

Hillocks Farm, a planned $100 million commercial and retail development, is slated for a 190-tract on Highway 153, and Northgate Mall is under redevelopment by owner CBL & Associates Properties Inc.

Just last week, an Ohio real estate company paid $22.75 million for Oak Park Town Center on Highway 153. The sales price was more than double what was paid three years ago.

"What may be happening is that other retailers...are tapping into that potential" in the Hixson market, Henderson said.

Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.

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