Food City is seeking a green light from Hamilton County regulators to move ahead on its initial three fuel centers in the area.
The centers are slated to go up next to Food City supermarkets in St. Elmo and Harrison and near its Red Bank store, said John Jones, the grocer's executive vice president.
"It's a very important part of our business," he said about the Gas 'N Go locations where motorists can save on fuel costs if they shop with the grocery chain. "It's important to our customers."
The St. Elmo and Harrison centers will go up in the stores' parking lots, Jones said. They'll be constructed along with a major remodeling of those supermarkets, he said.
In Red Bank, Food City has identified a parcel at Dayton Boulevard and Leawood about a block away from its store. The site formerly held Donut Palace, said company marketing coordinator Tammy Baumgardner.
Food City parent K-VA-T Food Stores filed for a permit for the fuel centers with the Chattanooga-Hamilton County Air Pollution Control Bureau.
This year, the company plans to install five to eight of the centers in the Chattanooga area. The work is part of $40 million to $50 million the Abingdon, Va.-based company has pledged to spend over three years on its 29 area stores.
Last year, the grocer acquired the former Bi-Lo stores in the area's biggest grocery store deal in more than a decade.
Jones said Food City operates a variety of fuel centers both in parking lots and off site near its stores in other parts of Tennessee, Virginia and Kentucky. Center sizes range from kiosks to convenience stores, he said.
"We've got different sizes and configurations," Jones said.
He said Food City treats the centers as part of the store, just as the bakery section or produce.
"We'll work diligently to put them through the market," Jones said.
He said Food City customers at its stores can redeem points they gather by buying goods to lower to cost of their gas purchases.
"A lot of shoppers like the fuel advantage," Jones said.
Food City is joining a growing number retailers with fuel centers in the area.
Wal-Mart has added Murphy USA fuel centers at some of its Supercenters in recent months as well as building them next to its new Neighborhood Markets. Convenience store operator Weigel's has said it expects to put up at least four units in the region, though it has yet to break ground on a planned facility off Signal Mountain Road.
Knoxville-based Pilot, along with major players Speedway and RaceTrac, also have entered the fuel fray in and around Chattanooga in recent years, joining existing companies such as Mapco, Kangaroo and others.
Consumers often prefer to fill their gas tanks at grocery stores and wholesale clubs rather than traditional gas stations, according to a study by Market Force Information.
Food City has said that four more of its supermarkets in the Chattanooga area will see lesser remodeling efforts through this winter and spring. This summer, work will start on six more stores and eventually renovation will touch the remaining units within two to three years.
Also, there are several others which will need replacement, requiring either rebuilding or new locations, officials have said.
Contact Mike Pare at mpare@timesfreepress.com or 423-757-6318.