Constructed in 1939, in the Art Deco and Streamline Moderne styles as a suburban theater, the Alabama primarily booked roadshow engagements through most of its history.

[2][8] Gary Hoover, one founder of Bookstop, stated that his architects set up the building so it could be easily converted back into the theater in case the bookstore closed.

Weingarten Realty Investors, owner of the theater was interested in saving the historic building as long as the proposals make economic sense for the company.

[12] The Greater Houston Preservation Alliance recently placed the Alabama Theater on its endangered buildings list due to the threat of demolition.

[21] Throughout the processes of restoration and conversion to grocery store, Trader Joe’s made efforts to preserve and pay homage to the building’s history, such as putting 1000 hours of work into refurbishing the ceiling (featuring a large medallion), rewiring the theater marquee, preserving the balcony and entrance mosaic tile floors (as stated in the renovation plans), creating thematic movie posters (e.g., "Gentlemen Prefer Blonde Ales," "Reservoir Hot Dogs," "Pulpy Fiction”), and displaying a genuine poster of the first movie to screen at the theatre in 1939.

Due to the restoration, the Alabama Shepherd Shopping Center won the 2013 Landmark Award in Historic Preservation from the Houston Business Journal.