Kroger-owned grocery banner Dillons plans to return to the Kansas City metropolitan area, starting with a Dillons Marketplace store slated for a site about 25 miles outside the city, the supermarket company announced Friday.
The new store, which will sit at the intersection of College Avenue and Sunnybrook Boulevard in Olathe, Kansas, reflects “strong community interest in seeing Dillons return to the Kansas City market,” the chain said in an emailed press release.
Dillons did not indicate when it expects the new location to open. The chain is in talks with Olathe officials to hammer out plans for the building that will house the store, Dillons Division President Steve Dreher said in a statement.
The company said it plans to spend more than $40 million on the project, “signaling Dillons’ confidence in the Kansas City market and its dedication to the community of Olathe.”
Dillons ended its presence in the Kansas City area in 2008, according to local TV station KCTV. The retailer currently operates about 60 stores in 30 Kansas cities and is preparing to open a new location in Lawrence, Kansas, on Friday.
Dillons’ announcement that it will expand to the Kansas City region follows Kroger’s disclosure in September that it plans to spend $160 million to develop four Kroger Marketplace stores in the Dallas-Fort Worth area. Kroger also plans to close 60 underperforming supermarkets by the end of next year as it looks to strengthen its financial performance.
