Kroger is moving forward with construction of a new, larger Mechanicsville store a short distance from its existing store in the area.

The Ohio-based grocery store chain plans to break ground this week on a $40 million, 123,000-square-foot Kroger Marketplace location at 6468 Mechanicsville Turnpike, near the turnpike’s intersection with Compass Point Lane.

The upcoming store would replace the existing 58,000-square-foot Kroger that is less than a mile away at 6335 Mechanicsville Turnpike. The property where the current Mechanicsville store is located is owned by Kroger, and future plans for the site are still to be determined, company spokesman James Menees said.

In addition to groceries, the Kroger Marketplace will have a Starbucks, cheese counter and a pharmacy as well as home goods and clothing. There would also be a gas station with 18 fuel pumps.

“We have outgrown the current location and look forward to offering a larger store to meet the needs of the community. The new Marketplace will feature the best that Kroger has to offer,” Menees said in an email.

The new store is planned to open in early 2026. It is expected to have nearly 300 associates, and about half of them are anticipated to be new hires.

Kroger owns the entire 16-acre site, which will have entrances on Mechanicsville Turnpike and on Compass Point Lane. The site wraps around existing AutoZone and Firestone stores near the intersection.

Site work on the property was already underway this week. The project’s general contractor is Collins and Arnold. Robertson Loia Roof is handling architectural design and engineering.

In addition to the Kroger Marketplace, there would be a 9,800-square-foot commercial strip center on the property, according to a site plan. The building would be an additional investment on top of the $40 million grocery store, though it doesn’t yet have a construction timeline yet, Menees said.

Hanover approved the project’s site plan last month. The project has been years in the making , following initial zoning approval secured in 2015.

Kroger has about 20 stores in the Richmond region, according to the company’s website.