Larry's Markets plans to build a new store in the former Hansen Baking Co. building, on Mercer Street in Queen Anne.
Don Miliken, a Canadian developer, will develop the Mercer Street Larry's. Construction is planned to start this fall.
The building will contain a drug store and other shops and feature a below-ground parking area.
This is part of a major expansion by Larry's, which also plans to move its White Center store next door, into the building now occupied by Fred Meyer.
Fred Meyer may consolidate its operations in its Burien store, said James Troxel, president of Supermarket Development, which is developing the White Center store for Larry's. The space will be renovated.
Larry's is also renovating the food court area in some of its stores by adding a Mexican kiosk and moving Lorenzo's, its espresso and chocolate bar, to the front of the food court. A section featuring Northwest foods will be added, along with video rentals and lotto ticket sales.
"We're really trying to finish off what we started with the food court," says Larry Andrews, Larry's vice president of sales.
A third new store is now under construction on Pacific Highway