UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                            Washington, D. C. 20549

                                   FORM 10-Q
(Mark One)
[X]       QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
          OF THE SECURITIES EXCHANGE ACT OF 1934

          For the quarterly period ended September 2, 2006
OR

[ ]       TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)
          OF THE SECURITIES EXCHANGE ACT OF 1934

          For the transition period from _____________ to ______________

          Commission File No. 0-5815

                            AMERICAN CONSUMERS, INC.
                            ------------------------
             (Exact name of registrant as specified in its charter)

                GEORGIA                             58-1033765
                -------                             ----------
      (State or other jurisdiction of      (I.R.S. Employer Identification
       Incorporation or organization)                  Number)

             55 Hannah Way, Rossville, GA               30741
             ------------------------------------------------
            (Address of principal executive offices)   (Zip Code)

       Registrant's Telephone Number, including Area Code: (706) 861-3347
      ---------------------------------------------------------------------
      (Former name, former address and former fiscal year, if changed since
                                  last report)

Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding  12  months  (or  for such shorter period that the registrant was
required  to  file  such  reports),  and  (2)  has  been  subject to such filing
requirements  for  the  past  90  days.  YES  (X)  NO  ( )

Indicate by check mark whether the registrant is a large accelerated filer, an
accelerated filer, or a non-accelerated filer.  See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check
one):

Large accelerated filer ( )   Accelerated filer ( )   Non-accelerated filer (X)

Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). ( ) YES   (X)  NO

                      APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.

               Class                             Outstanding at October 5, 2006
COMMON STOCK - $ .10 PAR VALUE                           796,013
NON VOTING COMMON STOCK - $ .10 PAR VALUE                  ----


<PAGE>
<TABLE>
<CAPTION>
ITEM 1.   FINANCIAL STATEMENTS
                              FINANCIAL INFORMATION
                            AMERICAN CONSUMERS, INC.
              CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
                                   (UNAUDITED)

                                         THIRTEEN WEEKS ENDED
                                     ----------------------------
                                      September 2,     August 27,
                                          2006           2005
                                     --------------  ------------
<S>                                  <C>             <C>
NET SALES                            $   8,390,711   $ 7,995,089
COST OF GOODS SOLD                       6,377,694     6,040,175
                                     --------------  ------------
Gross Margin                             2,013,017     1,954,914
OPERATING, GENERAL AND
ADMINISTRATIVE EXPENSES                  2,007,795     1,969,789
                                     --------------  ------------
Operating Income (Loss)                      5,222       (14,875)

OTHER INCOME (EXPENSE)
  Interest income                            3,628         2,600
  Other income                              26,350        21,576
  Interest expense                         (14,853)      (13,202)
                                     --------------  ------------
Income ( Loss) Before Income Taxes          20,347        (3,901)
INCOME TAXES                                     -             -
                                     --------------  ------------

NET INCOME (LOSS)                           20,347        (3,901)

RETAINED EARNINGS:
  Beginning                                775,615       943,462
  Redemption of common stock                   (59)            -
                                     --------------  ------------
  Ending                             $     795,903   $   939,561
                                     ==============  ============

PER SHARE:
  Net income (loss)                  $       0.026   $    (0.005)
                                     ==============  ============
  Cash dividends                     $           -   $         -
                                     ==============  ============
WEIGHTED AVERAGE NUMBER
  OF SHARES OUTSTANDING                    796,257       803,988
                                     ==============  ============
</TABLE>

                       See Notes to Financial Statements


                                        2
<PAGE>
<TABLE>
<CAPTION>
                               FINANCIAL INFORMATION
                              AMERICAN CONSUMERS, INC.
                              CONDENSED BALANCE SHEETS

                                                        September 2,     June 3,
                                                            2006           2006
                                                       --------------  ------------
                                                        (Unaudited)
                                --A S S E T S--
<S>                                                    <C>             <C>
CURRENT ASSETS
  Cash and short-term investments                      $     496,223   $   334,654
  Certificate of deposit                                     300,000       314,773
  Accounts receivable                                        152,684       170,316
  Inventories                                              2,123,195     2,124,431
  Prepaid expenses                                           178,418       123,545
                                                       --------------  ------------
Total current assets                                       3,250,520     3,067,719
                                                       --------------  ------------
PROPERTY AND EQUIPMENT - at cost
  Leasehold improvements                                     295,057       295,057
  Furniture, fixtures and equipment                        3,303,277     3,300,542
                                                       --------------  ------------
                                                           3,598,334     3,595,599
  Less accumulated depreciation                           (3,189,168)   (3,151,622)
                                                       --------------  ------------
                                                             409,166       443,977
                                                       --------------  ------------
TOTAL ASSETS                                           $   3,659,686   $ 3,511,696
                                                       ==============  ============

                    --LIABILITIES AND STOCKHOLDERS' EQUITY--
CURRENT LIABILITIES
  Accounts payable                                     $   1,041,047   $   867,663
  Short-term borrowings                                      513,447       527,131
  Current maturities of long-term debt                        73,219        78,120
  Accrued sales tax                                          137,420       156,442
  Other                                                      229,185       217,981
                                                       --------------  ------------
Total current liabilities                                  1,994,318     1,847,337
                                                       --------------  ------------
LONG-TERM DEBT                                               126,052       144,497
                                                       --------------  ------------

STOCKHOLDERS' EQUITY
  Nonvoting preferred stock - authorized 5,000,000
    shares of no par value; no shares issued                       -             -
  Nonvoting common stock - authorized 5,000,000
    shares-$.10 par value; no shares issued                        -             -
  Common stock - $.10 par value; authorized 5,000,000
    shares; shares issued of 796,013 and 796,905              79,601        79,691
  Additional paid-in capital                                 663,812       664,556
  Retained earnings                                          795,903       775,615
                                                       --------------  ------------
Total Stockholders' Equity                                 1,539,316     1,519,862
                                                       --------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY             $   3,659,686   $ 3,511,696
                                                       ==============  ============
</TABLE>

                       See Notes to Financial Statements


                                        3
<PAGE>
<TABLE>
<CAPTION>
                               FINANCIAL INFORMATION
                             AMERICAN CONSUMERS, INC.
                        CONDENSED STATEMENTS OF CASH FLOWS
                                    (UNAUDITED)

                                                         THIRTEEN WEEKS ENDED
                                                      ----------------------------
                                                       September 2,    August 27,
                                                           2006           2005
                                                      --------------  ------------
<S>                                                   <C>             <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income (loss)                                     $      20,347   $    (3,901)
Adjustments to reconcile net income (loss) to
  net cash provided by operating activities:
    Depreciation and amortization                            37,546        66,165
    Change in operating assets and liabilities:
      Accounts receivable                                    17,632       (14,094)
      Inventories                                             1,236       106,228
      Prepaid expenses                                      (54,873)      (27,928)
      Accounts payable                                      173,384        95,720
      Accrued sales tax                                     (19,022)      (10,984)
      Other accrued liabilities                              11,204         5,016
                                                      --------------  ------------
Net cash provided by operating activities                   187,454       216,222
                                                      --------------  ------------

CASH FLOWS FROM INVESTING ACTIVITIES
  Decrease (increase) in certificate of deposit              14,773        (1,145)
  Purchase of property and equipment                         (2,735)       (8,250)
                                                      --------------  ------------
Net cash provided by (used in) investing activities          12,038        (9,395)
                                                      --------------  ------------

CASH FLOWS FROM FINANCING ACTIVITIES
  Net increase (decrease) in short-term borrowings          (13,684)          566
  Principal payments on long-term debt                      (23,346)      (58,811)
  Redemption of common stock                                   (893)            -
                                                      --------------  ------------
Net cash used in financing activities                       (37,923)      (58,245)
                                                      --------------  ------------
Net increase in cash                                        161,569       148,582
Cash and cash equivalents at beginning of period            334,654       298,759
                                                      --------------  ------------
Cash and cash equivalents at end of period            $     496,223   $   447,341
                                                      ==============  ============
</TABLE>

                       See Notes to Financial Statements


                                        4
<PAGE>
                            AMERICAN CONSUMERS, INC.
                          NOTES TO FINANCIAL STATEMENTS

(1)  Basis of  Presentation.

     The  financial  statements  have  been  prepared  in conformity with United
     States  generally  accepted  accounting  principles.

     The  interim  financial  statements  have  not  been  audited and should be
     read in conjunction with the notes to the financial statements presented in
     the  Corporation's  2006  Annual  Report  to  Shareholders.  The  quarterly
     financial  statements  reflect all adjustments which are, in the opinion of
     management,  necessary  for  a fair presentation of the results for interim
     periods. All such adjustments are of a normal recurring nature. The results
     for the interim periods are not necessarily indicative of the results to be
     expected  for  the  complete  fiscal  year.

(2)  Commitments  and  Contingencies.

     Capital  expenditures  for  equipment  replacements  in the ordinary course
     during  fiscal 2007 are estimated to be $30,000 or less, which we expect to
     be  funded  from  operating  cash flows. Additionally, we expect to have to
     replace  anywhere  from one to three additional vehicles during fiscal 2007
     at  an estimated cost of approximately $25,000 per vehicle, which we expect
     to  fund  through  either  bank or manufacturer financing, whichever option
     will  provide  the  Company  with  the most favorable terms. Finally, while
     management  is  attempting to postpone future upgrades of our existing cash
     registers  and  scanning equipment beyond fiscal 2007, pending changes that
     will  add  an  additional  digit  to the bar codes on the inventory that we
     carry  will likely require such upgrades within the next two to five fiscal
     years.  We  cannot  reliably  estimate the cost of any such upgrades at the
     present  time,  but we will attempt to manage the number of units purchased
     and  the  timing  of  such  purchases  in  a manner which both contains the
     Company's  overall  costs  and  allows us to finance these purchases on the
     most  favorable  terms that we are able to obtain. As of September 2, 2006,
     capital  expenditures  for  the  fiscal  year  to  date  totaled  $2,735.

     The  Company  has  adopted  a  401(k)  plan that is administered by Capital
     Bank  and  Trust  Company.  Participation  in  the plan is available to all
     full-time  employees.  The  Company's  annual contributions to the plan are
     discretionary. The Company's contribution to the plan was $7,500 in each of
     fiscal  years  2006,  2005  and  2004.

(3)  Cost of  Goods  Sold.

     Cost  of  goods  sold  is  comprised  of  the  cost  of  purchasing  the
     Company's  products  (such as groceries and other vendor-supplied products)
     which  are  sold  during  the  period.  Cost  of goods sold is equal to the
     beginning  inventory,  plus  the cost of goods purchased during the period,
     less  the  amount comprising ending inventory. The cost of goods sold shown
     on the Company's Statement of Income and Retained Earnings is presented net
     of  rebates  from  suppliers.  These  rebates  represent cash consideration
     received  from  suppliers  based  primarily  on  the  Company's  volume  of
     purchases  from  such suppliers. These rebates do not include reimbursement
     of  costs incurred to sell the supplier's products. In accordance with EITF
     02-16,  the  Company  applies rebates from suppliers (excluding rebates for
     advertising  costs)  as  a  reduction  in  cost  of  goods  sold.


                                        5
<PAGE>
ITEM  2
                MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                       CONDITION AND RESULTS OF OPERATIONS

                              RESULTS OF OPERATIONS
                              ---------------------

<TABLE>
<CAPTION>
                                                      THIRTEEN WEEKS ENDED
                                                  ----------------------------
                                                   September 2,    August 27,
                                                       2006           2005
                                                  --------------  ------------
<S>                                               <C>             <C>
Sales                                             $   8,390,711   $ 7,995,089
% Sales Increase (Decrease)                                4.95%       (0.38)%
Gross Margin %                                            23.99%        24.45%
Operating, General and Administrative Expenses:
  Amount                                          $   2,007,795   $ 1,969,789
  % of Sales                                              23.93%        24.64%
Net Income (Loss)                                 $      20,347   $    (3,901)
</TABLE>

Overview:
--------

American  Consumers,  Inc.  (the  "Company"),  operates  eight  (8) self-service
supermarkets  within  a  compact  geographical  area  that  comprises  Northwest
Georgia,  Northeast  Alabama,  and Southeast Tennessee.  All of our supermarkets
are  operated  under the name "Shop-Rite," and are engaged in the retail sale of
groceries  including  meats, fresh produce, dairy products, frozen foods, bakery
products,  tobacco  products,  and  miscellaneous  other  non-food  items.

The  current  thirteen weeks (quarter) ended September 2, 2006 resulted in a net
income  in  the  amount  of $20,347.  During this current period sales increased
4.95%  over the same period last year.  We began a program during the quarter to
introduce  low  priced vegetables to compete with other stores in our trade area
who  offer  this option to their customers.  While management believes that this
program  was  a  significant  factor  contributing to the increase in sales, the
increase  also  was influenced by the closing of a competitor located in between
two  of  the  Company's stores during the fourth quarter of the Company's fiscal
2006.  We  also  believe that prevailing high gasoline prices during the quarter
contributed  to  the increase, as customers chose to purchase more groceries for
home  meal  preparation  to  reduce their spending at restaurants.  However, the
introduction  of  lower-priced  vegetables,  as  well as periodic meat sales and
other weekly advertised specials run to stimulate sales during the quarter, also
led  to  a  reduction  in  our gross margin to 23.99%, which represented a 0.46%
reduction  compared to the comparable quarter of last year and a 0.19% reduction
compared  to  the  gross  margin  realized  for  fiscal  year  2006.

The  Company  realized  a net loss for the thirteen weeks (quarter) ended August
27, 2005, of $3,901, a significant improvement over the loss of $124,884 for the
same  period  of  the  previous year even though sales remained essentially flat
compared to the prior year period.  The improvement is partially due to the fact
that  we  succeeded  during  the  quarter  in strategically adjusting our retail
pricing mix to recapture the increase that our principal supplier implemented in
its wholesale markup during the third quarter of the Company's fiscal 2005.  The
completion  of  this  retail  pricing  adjustment  was  reflected  in the slight
improvement in the gross margin percentage presented above for the quarter ended
August  27,  2005  (24.45%,  as  compared  to 24.04% for the prior year period.)


                                        6
<PAGE>
Management  actively  monitors  both  the  gross margin and the company's retail
pricing  structure  in  an  attempt  to maximize profitability. Management began
working  on the Company's gross margin during the quarter ended August 31, 2002,
at which time the gross margin stood at 22.79% for the fiscal year ended June 1,
2002.  While  occasional  improvements  in gross profit have been seen in recent
periods,  such  as the 0.29% increase we achieved in fiscal 2006 versus 2005, it
is  difficult  to maintain a trend of consistent improvement in the gross margin
due  to  competitive  conditions which often delay the Company's ability to pass
through  price  increases experienced at the wholesale level. Accordingly, while
management  attempts  to  offset  increases  in  its  cost  (such  as our recent
successes in recovering our principal supplier's wholesale price increase during
2005  and  a  fuel  surcharge added by the supplier during the second quarter of
fiscal  2006), further improvements in the gross margin may not be achievable at
this  time, and further deterioration in the Company's gross margin is possible.
While  the  increase  in  sales more than offset the impact of the reduced gross
margin  on  profitability, the gross margin reduction experienced as a result of
pricing  adjustments  to  increase sales during the most recent quarter provides
further  evidence  of  this  trend.

Management believes that competitive pressures on the Company, which have led to
the losses experienced in recent periods, will continue to increase over time as
a  result  of  competitors  opening more new stores in the Company's trade area.
These  competitors  have  greater financial resources than those of the Company,
and  may  be able to obtain preferential treatment from suppliers in the form of
advertising  allowances, lower prices and other concessions not available to the
Company.  These  factors  allow  our competitors to engage in aggressive pricing
and  promotional  activities  that  the  Company  cannot  match, putting us at a
competitive  disadvantage.  In  response  to these developments, management will
continue  seeking  to manage the Company's pricing structure to produce the most
favorable  balance  between  increases  in sales, which help to offset our fixed
operating  expenses, and the gross margin, which determines the profitability of
the  additional sales.  We will attempt to improve the gross margin and increase
profitability  by working to obtain the lowest cost for the Company's inventory,
and  as  competition  permits,  by  periodically implementing adjustments in the
Company's  overall  mix  of  retail  prices.

Our  gross  margins  may  not  be  directly  comparable  to  those of our larger
competitors,  since  some  of  those  companies  may  include the costs of their
internal  distribution networks in cost of goods sold - thus impacting the gross
margin  -  while  others  reflect  such  costs  elsewhere (such as in operating,
general  and  administrative expenses).  Unlike many of the larger grocery store
chains with which we compete, the Company does not have an internal distribution
network.  Inventory  is  delivered directly to our individual store locations by
our wholesale supplier, which recovers its distribution costs through the markup
that  it  charges  to  the  Company.

Management has been working to reduce operating and administrative expenses.  As
reflected  in  the table above, the expenses, while increasing $38,006, actually
decreased  by 0.71% as a percentage of sales for the current quarter as compared
to  the  same quarter last year. The. reduction of these expenses by $93,630 (or
1.07%  of  sales)  in the quarter ended August 27, 2005 as compared to the prior
year  period  is the other major reason for the improvement in the Company's net
loss  for  the first quarter of fiscal 2006. This improvement is attributable to
the  decreases  detailed  below  under  the  caption  "Operating,  General  and
Administrative  Expenses."  In  addition  to  the  fuel  surcharge  added by our
principal  supplier,  we anticipate that our inventory cost also may increase in
the  near  term due to similar cost increases being passed on to us by our other
vendors.  These factors, combined with the relatively fixed nature of certain of
our  expenses,  mean  that  any  future  decrease in sales due to the effects of
ongoing  competition  will


                                        7
<PAGE>
likely  erode  that improvement experienced in these expenses as a percentage of
sales  during the current quarter, which could intensify the Company's operating
losses.

Sales:
-----

Sales  for  the three months ended September 2, 2006 increased $395,622 or 4.95%
compared  to  the  same  quarter last year.  Six of our stores experienced sales
increases  ranging  from  2.47% to 14.99% (with the 14.99% increase representing
the  achievement of a more normalized level of sales at our eighth grocery store
location,  following  an  extended transitional period after its addition to the
Company  in December 2003).  The two remaining stores experienced sales declines
of  0.34%  and  4.10%.  The 4.10% decline occurred at a location where we had to
replace  certain  store-level  management  employees  in  connection  with  the
significant  theft  loss  that  was  discovered  during  our annual audit.  This
location also continues to be adversely impacted by the fact that another tenant
moved out of the shopping center where it is located during fiscal 2006, as well
as  by  generally  unfavorable  traffic pattern conditions at that location.  As
discussed  above,  we  believe  that  the  4.95% increase in sales for the first
quarter  of  the  fiscal  2006 period as compared to the first quarter of fiscal
2005  is  attributable  to the lower-priced vegetables program introduced during
the  quarter,  as well as the closing of a competitor located between two of the
Company's  stores  and  the  effects  of  high gas prices on consumers' spending
choices.  Sales  for  the  month  of  September 2006 were up 3.94% over the same
month  last year.  Management is attempting to maintain the increase by offering
low  priced  vegetables  to our customers and continuing with special meat sales
throughout  the  year  as  well  as  our  weekly  advertised  specials.

Sales  for  the  three  months  ended  August  27, 2005 remained relatively flat
compared  to  the  same  quarter  of fiscal 2004.  The slight decline of $30,882
amounted  to  a  sales  decrease of only 0.38%.  Three of our stores experienced
sales  increases  ranging from 2.13% to 5.90% during the quarter, while the five
remaining  stores  experienced  sales declines ranging from 1.40% to 3.54%.  The
9.44%  increase  in  sales  for  the  first quarter of the fiscal 2005 period as
compared  to the first quarter of fiscal 2004 was nearly all attributable to the
addition  of  the  Company's  eighth  grocery  store  in December 2003, as sales
remained  essentially  flat  at  the  other  seven  locations.

Gross Margin:
------------

The  Company's  gross  margin percentage for the three months ended September 2,
2006  decreased  by  0.46% from 24.45% to 23.99% as compared to the three months
ended  August  27, 2005.  This decrease is attributable to the vegetable program
and  the  other  promotional activities discussed above, as well as to increased
wholesale  costs  for  certain  items  (principally  certain  private  label
merchandise)  which  we have not yet succeeded in passing on through adjustments
to  our  retail  prices.

As  discussed  above, the slight improvement in the gross margin for the quarter
ended  August 27, 2005 (24.45%, as compared to 24.04% for the prior year period)
was  due  to  the  fact  that  we  succeeded during the quarter in strategically
adjusting  our  retail  pricing mix to recapture the increase that our principal
supplier  implemented  in  its  wholesale markup during the third quarter of the
Company's  fiscal  2005,  and we also succeeded in adjusting prices to recover a
fuel  surcharge  added by the supplier during the second quarter of fiscal 2006.
Price  increases  have also occurred from other vendors and the Company has also
attempted  to  recover  these increased costs through further adjustments to our
retail prices.  Management will continue seeking to improve the gross margin and
increase  profitability  by  obtaining  the  lowest  cost  for  the


                                        8
<PAGE>
Company's  inventory,  and  as competition permits, by periodically implementing
strategic  adjustments  in  the  Company's  overall  mix  of  retail  prices.

Operating, General and Administrative Expenses:
----------------------------------------------

The  Company's  ongoing  operating,  general  and  administrative  expenses  are
comprised  mainly  of  personnel salary and related payroll costs, utilities and
telephone  expenses,  rental  payments  for leased locations, insurance expense,
advertising  and promotion expense, general and office supplies expense, repairs
and  maintenance,  depreciation  expense,  bank  service charges and credit card
fees,  bad  checks  expense,  professional  fees,  and other minor miscellaneous
expenses.  In  accordance  with  EITF  02-16,  advertising rebates received from
suppliers  are  deducted  from  advertising  expense  within  this  category.

The  following  table  details  the  components  of  operating,  general  and
administrative expenses, both in absolute terms and as a percentage of the total
of  all  such  expenses, for the quarters ended September 2, 2006 and August 27,
2005:

<TABLE>
<CAPTION>
                               First Quarter   % of First Qtr.  First Quarter   % of First Qtr.
Expense Item                    2006 Amount      2006 Total      2005 Amount      2005 Total
-----------------------------  --------------  ---------------  --------------  ---------------
<S>                            <C>             <C>              <C>             <C>
Payroll                        $      999,768             49.8  $      959,886             48.7
Utilities & telephone expense         173,516              8.6         155,251              7.9
Rent                                  160,050              8.0         155,154              7.9
Insurance                             166,010              8.3         157,693              8.0
Advertising & promotion               132,747              6.6         150,133              7.6
General & office supplies              92,183              4.6          92,247              4.7
Repairs & maintenance                  86,297              4.3          88,637              4.5
Depreciation                           37,546              1.9          66,165              3.4
Bank service charges and
credit card fees                       40,529              2.0          33,040              1.7
Bad checks                             43,873              2.2          34,117              1.7
Professional fees                      18,597              0.9          28,654              1.4
All other misc.                        56,679              2.8          48,812              2.5
                               --------------  ---------------  --------------  ---------------
TOTAL                          $    2,007,795            100.0  $    1,969,789            100.0
                               ==============  ===============  ==============  ===============
</TABLE>

Overall, operating, general and administrative expenses increased by $38,006 (or
1.9%)  for  the  quarter  ended  September 2, 2006 as compared to the comparable
period of 2005.  The most significant increase in these expenses for 2006 was in
the  area  of personnel salary and related payroll costs.  These costs increased
by  $39,882,  due  to  an  increase in the bonuses awarded or accrued during the
quarter  (principally  to  store-level  management  employees)  of approximately
$6,500  and increases in base salaries given to store personnel during the month
of  April  2006,  as  well as the addition of one employee to the Company's main
office staff during the month of October 2005.  Increases of $7,489 in both bank
service  charges  and  credit  card  fees  and $9,756 in bad checks expense also
significantly influenced the increase in these expenses for the current quarter.
The  Company's  practice  of cashing payroll checks for customers at its grocery
store


                                        9
<PAGE>
locations  contributed  to  these  increases,  but they also are attributable to
increases  in  merchant  fees paid by the Company as more customers elect to pay
for grocery purchases with debit and credit cards.  Management believes that the
practice  of cashing customers' checks, while posing risks for the Company (such
as  the theft loss that was experienced during the fourth quarter of fiscal 2006
and  the  recent  increases  in  bad  checks  expense),  is  also  vital  to our
competitive  strategy  for maintaining customer traffic and growing sales in the
face  of  the  increased  competition from larger grocery retailers that we have
experienced  in  recent years.  We have installed a check verification system to
reduce  bad  checks  expense  and are investigating a possible upgrade to a more
sophisticated  system  to  further  combat  this problem.  We are also exploring
other  measures  to  improve  our  process  for  managing customer check cashing
activities  and  reducing  associated  expenses  while  continuing to offer this
service  to  our  customers.

Other  significant  increases in these expenses for the 2006 quarter included an
increase  of  $18,265  in  utilities  and  telephone  expense,  largely  due  to
increasing  energy  costs  in  recent  periods  which  are  beyond the Company's
control,  an  increase  of  $8,317  in  insurance expense (due to an increase of
$10,625  in  group  insurance  partially offset by a decrease of $2,308 in other
insurance  expense),  a  $4,896 increase in rent (due to the recent renewal of a
lease  at  one  store  location  at  a  higher  base  rent, as well as to higher
percentage  rents  based on the sales increases noted above), and an increase of
$7,867  in  the  "all  other  miscellaneous"  component (composed primarily of a
$6,143  increase  in  vehicle expenses due to increased vehicle usage as well as
increased  maintenance  as  we have stretched our historical vehicle replacement
schedules  in order to reduce capital spending).  These increases were partially
offset  by  decreases in certain components of these expenses as compared to the
first  quarter  of  the  prior  fiscal  year,  including  a  $28,619 decrease in
depreciation  (reflecting  a  significant  reduction  in  our  purchases  of new
equipment  during  fiscal  2006  as compared to prior years, as well as the fact
that  some  of  our  older  equipment  is  now fully depreciated), a decrease of
$17,386  in  advertising  and promotion expense (reflecting the fact that we did
not  run  certain  programs  that  increases  these expenses last year, but also
offset  by  increases in the cost of the other promotions described above during
the  first  quarter  of  fiscal  2007),  and  a decrease in professional fees of
$10,057  (due  principally  to discontinuing the services of an outside security
firm  that  was  contracted  for one location during the corresponding period of
last  year).

For  the  quarter  ended  August 27, 2005, operating, general and administrative
expenses decreased by $93,630 (or 4.5%) as compared to the corresponding quarter
of  the  prior  year.  The primary components of this decrease were decreases in
grocery  store  wages  ($38,128),  supplies expense ($36,668), insurance expense
($12,801),  and  professional  fees  ($10,553),  partially  offset  by increases
aggregating  to  $4,520  in  other operating, general and administrative expense
items,  principally  taxes  and  licenses.

In  accordance  with EITF 02-16, advertising rebates received from suppliers are
deducted  from  advertising  expense  within  this  category.


Interest and Other Income:
-------------------------

Other  income  (not  including  interest  income) increased from $21,576 for the
quarter  ended  August  27,  2005  to $26,350 for the quarter ended September 2,
2006.  The  components  of other income for the quarters ended September 2, 2006
and  August  27,  2005,  apart  from  interest  income,  were  as  follows:


                                       10
<PAGE>
<TABLE>
<CAPTION>
                                                            THIRTEEN WEEKS ENDED
                                                 ---------------------------------------
     Description                                   September 2, 2006    August 27, 2005
     ------------------------------------------  ---------------------  ----------------
<S>                                              <C>                    <C>

     Check cashing fees                          $              17,036  $         14,983
     Funds for handling money orders/transfers                   2,901             1,017
     Vendor's compensation from the States of
       Alabama and Georgia for collecting and
       remitting sales taxes on a timely basis                   3,695             3,552
     Returned check fees                                           555               290
     Revenue related to Fed-Ex shipments/other                   2,163             1,734
                                                 ---------------------  ----------------
     TOTAL                                       $              26,350  $         21,576
                                                 =====================  ================
</TABLE>

Changes  in  the  components of other income presented above relate primarily to
variations  in  the volume of the associated activity or service provided by the
Company  during  each  of  the fiscal quarters presented.  While interest income
increased  by  $1,028  as  compared  to  the  first  quarter of fiscal 2006 (due
principally  an  increase  in the interest rate applicable to the Company's bank
certificate  of  deposit for the quarter ended September 2, 2006), this increase
was  more  than  offset by a $1,651 in interest expense (due to increases in the
weighted  average  interest  rate  applicable to the Company's debt for the same
period).

Income Taxes:
------------

The  Company accounts for income taxes in accordance with the provisions of SFAS
No.  109,  "Accounting  for  Income  Taxes," which requires that deferred income
taxes  be  determined  based  on the estimated future tax effects of differences
between  the  financial  statement and tax bases of assets and liabilities given
the provisions of the enacted tax laws.  Valuation allowances are used to reduce
deferred  tax  assets  to  the  amount  considered  likely  to  be  realized.

No  amounts  have  been  provided for current and deferred federal and state tax
expense  in  the  statements of income for the thirteen weeks ended September 2,
2006  or  August 27, 2005, as a result of continued net operating losses and the
related  full  valuation  of  the  Company's  net  deferred  tax  assets.

Inflation:
---------

The Company continues to seek ways to cope with the threat of inflation.  To the
extent  permitted  by  competition, increased costs of goods and services to the
Company  are  reflected in increased selling prices for the Company's goods.  As
discussed above, however, competitive conditions often delay our ability to pass
through price increases experienced at the wholesale level.  When the Company is
forced  to  raise  overall prices of its goods, the Company attempts to preserve
its  market  share  by  competitive  pricing  strategies  that  emphasize
weekly-advertised  specials.


                                       11
<PAGE>
                               FINANCIAL CONDITION
                               -------------------

Liquidity and Capital Resources:
-------------------------------

Changes  in  the  Company's  liquidity  and capital resources during the periods
presented  resulted  primarily  from  the  following:

During  the  thirteen  weeks  ending  September  2,  2006, the Company generated
$187,454 in cash flow from operating activities, primarily due to the effects of
a  $173,384  increase  in  accounts payable, $37,546 in depreciation (which is a
non-cash  expense)  and net income of $20,347 for the period.  We also generated
$12,038  in  cash  flow  from  investing  activities  (consisting  of  a $14,773
reduction  in the balance of our certificate of deposit offset by $2,735 used to
fund  purchases of property and equipment (principally additional store shelving
at  our  seventh  and  eighth  grocery  store locations) during the quarter.  We
reduced  the  Company's  long-term  debt  by  a  net  amount  of $23,346 and its
short-term debt by a net amount of 13,684 (consisting of a net $13,680 reduction
in  borrowings from affiliated parties and a net $4 reduction in the amount owed
under the Company's line of credit) and redeemed $893 in common stock.  Overall,
the  Company  increased  its cash and cash equivalents in the amount of $161,569
during  the  quarter.

During the thirteen weeks ending August 27, 2005, the Company generated $216,222
in  cash  flow  from  operating  activities,  primarily  due to the effects of a
$95,720  increase  in  accounts payable, a decrease of $106,228 in the Company's
overall  inventory  levels,  and  $66,165  in  depreciation (which is a non-cash
expense),  which  more  than offset the small net loss of $3,901 experienced for
the  period.  We  also  increased  short-term borrowings by a net amount of $566
during  the  period.  In  addition  to the overall $148,582 increase in cash and
cash  equivalents  for  the  quarter,  other  uses of these funds included a net
reduction  of $58,811 in the Company's long-term debt and purchases of property,
plant  and  equipment  of  $8,250  (consisting  of  the  installation  of  check
verification  equipment  at three store locations and replacement of a condenser
on  a  refrigeration  unit)  during  the  first  quarter  of  fiscal  2006.

The  ratio  of current assets to current liabilities was 1.63 to 1 at the end of
the  latest  quarter, September 2, 2006 compared to 1.74 to 1 on August 27, 2005
and  1.66  to 1 at the end of the fiscal year ended on June 3, 2006.  Cash, cash
equivalents  and  the  certificate  of  deposit  constituted 24.50% of the total
current  assets at September 2, 2006, as compared to 24.44% of the total current
assets  at  August  27,  2005  and  21.17%  at June 3, 2006.  As the Company has
experienced  continued  operating losses in recent years, we have been forced to
rely  more  extensively  on  managing  other  elements  of the Company's overall
working  capital  structure (such as the reductions in inventories and increases
in  accounts payable noted above), as well as on additional borrowings under the
line  of  credit,  to  fund  ongoing  operations.  During  the  last  two years,
management  also has limited additional capital spending and has been attempting
to control costs in other areas to moderate the effects of these developments on
the  Company's  overall  liquidity  by  reducing  the  Company's working capital
requirements.

Historically,  the  Company  has  financed  its  working  capital  requirements
principally  through  its  cash  flow  from operations.  Short-term borrowing to
finance inventory purchases is provided by the Company's $500,000 line of credit
from  its  bank and through borrowings from related parties, as discussed below.
The  bank  line of credit is secured by the Company's certificate of deposit, as
well  as by a security interest in substantially all of our accounts receivable,
inventory,


                                       12
<PAGE>
machines  and  equipment,  furniture  and fixtures and by personal guarantees of
Michael  A.  Richardson  and  Paul  R. Cook, the Company's President and CEO and
Executive  Vice  President  and  CFO, respectively.  While we believe that these
sources  will  continue  to  provide  us  with  adequate liquidity to supply the
Company's  working  capital  needs,  if  the  Company's operating losses were to
increase relative to depreciation and other non-cash charges, our operating cash
flows  could  be  adversely  affected.  If this happens, we could be required to
seek additional financing through bank loans, or other sources, in order to meet
our  working  capital  needs.  If  we  were  required  to  seek  such additional
financing  and  were  not  able  to  obtain  it,  or  were  unable  to  do so on
commercially  reasonable  terms,  we  could  be required to reduce the Company's
current  level  of operations in order to lower our working capital requirements
to  a  level  that  our  present  financing  arrangements  would  support.

Short-term  borrowings  as  of  specific  dates  are  presented  below:

<TABLE>
<CAPTION>
                              September 2,   June 3,   August 27,
                                  2006         2006       2005
                              -------------  --------  -----------
<S>                           <C>            <C>       <C>
Michael and Diana Richardson  $      12,078  $ 11,840  $    12,988
Matthew Richardson                    1,373    15,291       21,697
Line of Credit                      499,996   500,000      400,000
                              -------------  --------  -----------
TOTAL                         $     513,447  $527,131  $   434,685
                              =============  ========  ===========
</TABLE>

During  the quarter ended September 2, 2006, we reduced the Company's borrowings
from  related parties by a net amount of $13,680 (reflecting payments of $14,000
net  of $558 in additional interest accrued) and reduced the outstanding balance
under  the  line  of  credit by a net amount of $4 (reflecting payments of $4 in
principal  and  $9976  in  interest).

The  Company's  line  of  credit  with  Northwest Georgia Bank bears interest at
prime,  subject  to  a 6.0% floor.  Notes to Michael and Diana Richardson and to
Matthew  Richardson  are  unsecured, payable on demand and bear interest at .25%
below  the  base  rate  charged by Northwest Georgia Bank on the line of credit.
Michael  Richardson  is Chairman of the Board and Chief Executive Officer of the
Company.  Diana  Richardson  is  the  wife  of  Michael  Richardson, and Matthew
Richardson  is  their  son.

Long-Term Debt:
--------------
At  September  2,  2006, long-term debt consisted of a note payable to Northwest
Georgia  Bank  of  $179,611 incurred in December 2003 to finance the addition of
the  Company's  eighth grocery store. In addition, one vehicle was purchased and
financed  through  Ford  Credit  with  a  balance  due  at September 2, 2006, of
$19,660.  Long-term  debt  as  of  specific  dates  is  presented  below:


                                       13
<PAGE>
<TABLE>
<CAPTION>
                                           September 2,   June 3,   August 27,
                                               2006         2006       2005
                                           -------------  --------  -----------
<S>                                        <C>            <C>       <C>
     Note payable, Bank, secured by
     all inventory, machinery and
     equipment, due $6,781 monthly
     plus interest at prime with 6% floor
     through December 2008.                $     179,611  $196,020  $   244,967

     Note payable, Bank, secured by
     all inventory, machinery and
     equipment, due $11,381 monthly
     plus interest at the prime rate
     through September 2006.                           -     5,941      105,086

     Note payable, Bank, secured by
     all inventory, machinery and
     equipment, due $3,576 monthly
     plus interest at the prime rate
     plus 1.5% through April, 2006.                    -         -       17,380

     Vehicle loans; collateralized by
     automobiles due $433 monthly
     through December 2010.                       19,660    20,656            -
                                           -------------  --------  -----------
                                           $     199,271  $222,617  $   367,433
     Less current maturities                      73,219    78,120      189,352
                                           -------------  --------  -----------
                                           $     126,052  $144,497  $   178,081
                                           =============  ========  ===========
</TABLE>

The  following  is  a  schedule  by  years  of  the  amount of maturities of all
long-term  debt  subsequent  to  September  2,  2006:

<TABLE>
<CAPTION>
                    Twelve Months
                   Ending September        Amount
                   ----------------       --------
<S>                                       <C>
                         2007             $ 73,219
                         2008               79,406
                         2009               40,044
                         2010                4,924
                         2011                1,678
</TABLE>

During the quarter ended September 2, 2006 retained earnings increased as a
result of the Company's net income for the quarter.


                                       14
<PAGE>
Critical Accounting Policies:
----------------------------

Critical  accounting  policies  are  those policies that management believes are
important  to  the portrayal of the Company's financial condition and results of
operations  and  require  management's  most  difficult,  subjective  or complex
judgments,  often  as a result of the need to make estimates about the effect of
matters  that  are  inherently  uncertain.

Management  has determined valuation of its inventories as a critical accounting
policy.  Inventories  are  stated  at  the  lower  of  average  cost  or market.

Off-Balance  Sheet  Arrangements:
--------------------------------

The Company had no significant off-balance sheet arrangements as of September 2,
2006.

Related Party Transactions:
--------------------------

Except as discussed above under "Liquidity and Capital Resources," there were no
material  related  party  transactions  during  the  thirteen  week period ended
September  2,  2006.

Forward - Looking Statements:
----------------------------

Information  provided  by the Company, including written or oral statements made
by  its representatives, may contain "forward looking information" as defined in
Section  21E of the Securities Exchange Act of 1934, as amended.  All statements
which  address  activities,  events  or developments that the Company expects or
anticipates  will or may occur in the future, including such things as expansion
and  growth of the Company's business, the effects of future competition, future
capital  expenditures  and  the Company's business strategy, are forward-looking
statements.  In reviewing such information it should be kept in mind that actual
results  may  differ  materially  from  those  projected  or  suggested  in such
forward-looking  statements.  This  forward-looking  information  is  based  on
various  factors  and was derived utilizing numerous assumptions.  Many of these
factors  previously have been identified in filings or statements made on behalf
of the Company, including filings with the Securities and Exchange Commission on
Forms  10-Q,  10-K  and  8-K.  Important assumptions and other important factors
that could cause actual results to differ materially from those set forth in the
forward-looking  statements  include:  changes  in the general economy or in the
Company's  primary  markets,  the  effects  of  ongoing  price  competition from
competitors  (some  of  which have greater financial resources than those of the
Company),  changes  in  consumer  spending,  the  nature and extent of continued
consolidation  in  the grocery store industry, changes in the rate of inflation,
changes  in  state  or federal legislation or regulation, adverse determinations
with  respect to any litigation or other claims, inability to develop new stores
or  complete  remodels as rapidly as planned, stability of product costs, supply
or  quality  control  problems  with the Company's vendors, and other issues and
uncertainties  detailed  from  time-to-time  in  the  Company's filings with the
Securities  and  Exchange  Commission.


                                       15
<PAGE>
ITEM 3.     QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The  Company  does  not  engage  in derivative transactions, nor does it hold or
issue  financial  instruments  for  trading  or other speculative purposes.  The
Company is exposed to market risk related to changes in interest rates primarily
as  a  result  of  its borrowing activities.  The effective interest rate on the
Company's  borrowings  under  its  Line  of  Credit  Agreements  and  under  its
outstanding notes varies with the prime rate.  The Company does not maintain any
interest  rate  hedging  arrangements.  Based  on  the  Company's  outstanding
indebtedness  at  September  2,  2006 (and annualized to represent a full twelve
months  of  results),  a  one percent (1.0%) increase in the prime interest rate
would  increase  interest  expense  applicable  to  our  variable rate debt (and
decrease  our  net  income) by approximately $7,000 annually.  Conversely, a one
percent  (1.0%)  decrease  in  the  prime  interest rate would decrease interest
expense  applicable  to  our variable rate debt (and increase our net income) by
approximately  $7,000  annually.  All of the Company's business is transacted in
U.S. dollars and, accordingly, foreign exchange rate fluctuations have never had
a  significant  impact  on  the  Company  and  they  are  not expected to in the
foreseeable  future.

ITEM 4.     CONTROLS AND PROCEDURES

As  of the end of the period covered by this quarterly report, an evaluation was
performed,  under  the supervision and with the participation of our management,
including the Company's Chief Executive Officer and the Chief Financial Officer,
of  the  effectiveness  of  the design and operation of the Company's disclosure
controls  and  procedures  pursuant  to Exchange Act Rule 13a-15.  Based on that
evaluation,  the  Chief  Executive Officer and Chief Financial Officer concluded
that  the Company's disclosure controls and procedures are effective.  No change
in  the  Company's internal control over financial reporting occurred during the
period  covered  by  this  quarterly  report  that  materially  affected,  or is
reasonably  likely  to  materially  affect,  our internal control over financial
reporting.


                                       16
<PAGE>
                            AMERICAN CONSUMERS, INC.

                          PART II     OTHER INFORMATION

ITEM 1A.    RISK FACTORS

Information regarding risk factors appears under the caption "Forward-Looking
Statements" in Part I, Item 2 of this Form 10-Q and in Part I, Item 1A of our
Annual Report on Form 10-K for the fiscal year ended June 3, 2006.  There have
been no material changes from the risk factors previously disclosed in our
Annual Report on Form 10-K.

ITEM 2.     UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(c)     Issuer Repurchases:
        ------------------

The following table presents information with respect to repurchases of common
stock made by the Company during the fiscal quarter covered by this report:

<TABLE>
<CAPTION>
                                         Average     Total Number of     Maximum Number of
                         Total Number     Price    Shares Purchased as  Shares that May Yet
                           of Shares    Paid per   Part of a Publicly      Be Purchased
Period                   Purchased (1)    Share      Announced Plan       Under the Plan
-----------------------  -------------  ---------  -------------------  -------------------
<S>                      <C>            <C>        <C>                  <C>
June 4 -
July 1, 2006                       453  $    1.00                    -                    -

July 2 -
August 5, 2006                     440       1.00                    -                    -

August 6 -
September 2, 2006                   -        1.00                    -                    -
                         -------------  ---------  -------------------  -------------------
TOTAL                              893  $    1.00                    -                    -
                         =============  =========  ===================  ===================
</TABLE>

(1)  Represents shares repurchased at $1.00 per share in response to unsolicited
     requests  from  unaffiliated  shareholders  during  the  quarter.

ITEM 6      EXHIBITS

     The  following  exhibits  are  filed  as  a  part  of  the  report.

     (11)     Statement re: computation of per share earnings.

     (31.1)   CEO Certification pursuant to Exchange Act Rules 13a-14(a) and
              15d-14(a).

     (31.2)   CFO Certification pursuant to Exchange Act Rules 13a-14(a) and
              15d-14(a).

     (32.1)   CEO Certification pursuant to Exchange Act Rules 13a-14(b) and
              15d-14(b).

     (32.2)   CFO Certification pursuant to Exchange Act Rules 13a-14(b) and
              15d-14(b).


                                       17
<PAGE>
                                   SIGNATURES
                                   ----------


Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.


                                        AMERICAN CONSUMERS, INC.
                                        (Registrant)


Date:  October 17, 2006                 /s/ Michael A. Richardson
      --------------------             --------------------------
                                        Michael A. Richardson
                                        CHAIRMAN OF THE BOARD AND
                                        CHIEF EXECUTIVE OFFICER
                                        (Principal Executive Officer)

Date:  October 17, 2006                 /s/ Paul R. Cook
      --------------------             --------------------------
                                        Paul R. Cook
                                        EXECUTIVE VICE PRESIDENT AND
                                        TREASURER
                                        (Principal Financial Officer & Chief
                                        Accounting Officer)


                                       18
<PAGE>
                            AMERICAN CONSUMERS, INC.

                                  EXHIBIT INDEX


Exhibits filed with this report:


     (11)     Statement re: computation of per share earnings.

     (31.1)   CEO Certification pursuant to Exchange Act Rules 13a-14(a) and
              15d-14(a).

     (31.2)   CFO Certification pursuant to Exchange Act Rules 13a-14(a) and
              15d-14(a).

     (32.1)   CEO Certification pursuant to Exchange Act Rules 13a-14(b) and
              15d-14(b).

     (32.2)   CFO Certification pursuant to Exchange Act Rules 13a-14(b) and
              15d-14(b).


                                       19