City officials joined executives from Bottom Dollar foods and developer Richard Soloff for a ceremonial ground-breaking on Friday.
"We've been a long time without a market in this city. Everyone, all of us, have championed that cause have said we can support a market because we support four or five others outside the city," said Mayor John Linder.
A study by the city found that Chester residents spend more than $43 million a year on retail on food shopping in surrounding communities.
The 18,000 square foot Bottom Dollar store, to be built at the corner of 15th Street and Edgemont Avenue, will keep some of the revenue closer to home.
It will also provide 40 to 50 jobs.
All that sounds good to Reed Johnson who lives just down the block.
"It'll be convenient, it's right here. All the travelling, all the traffic, and all that we can avoid. It's right here in the community where people need it," Johnson said.
Meanwhile, Philabundance is working on a non-profit supermarket at the corner of 9th and Trainer called Fare and Square.
That 13,000 square foot facility will employ dozens of part-time employees and is set to open later this summer.
The Bottom Dollar store is set to open early next year.