California grocery chain closes multiple stores after 91-year run

Another beloved West Coast grocery chain is putting several stores on the chopping block.

The Raley’s Companies — a California supermarket staple founded 91 years ago during the Great Depression — is shuttering multiple stores across California and Nevada and handing out dozens of pink slips as part of a regional downsizing plan.

The West Sacramento based operator has decided to let leases expire on several underperforming outposts amid plunging foot traffic and soaring costs.

“A variety of factors contributed to these store closures, including local market conditions and the long-term financial sustainability of these locations,”a spokesperson for the grocer confirmed to Grocery Dive. “Thoughtful stewardship sometimes means opening stores, and sometimes it means making difficult decisions to close them.”

The latest announcement comes after Raley’s already pulled the plug on stores in Roseville in January, and Antioch in April after opting not to renew their lease. A Nob Hill Foods, a subsidiary of Raley’s, also closed in Mountain View in May, reportedly impacting 50 employees.

The company, founded in 1935, will reportedly offer the impacted employees the option to transfer elsewhere.

The following stores will close by June of 2027:

• 2400 Sand Creek Road
• 2505 Mountain City Highway
• 157 North McDowell Boulevard
• 15710 Los Gatos Boulevard (Nob Hill Foods)

Raley’s isn’t disappearing, though.

The company is actually preparing to open a brand new supermarket in Madera, which is north of Fresno, in the spring of 2027. The new Raley’s O-N-E Market at Riverwalk at Riverstone broke ground in June.

Despite the seven closures, Raley’s still operates over 100 stores under banners including Raley’s, Nob Hill Foods, Bel Air, Raley’s O-N-E Market, Bashas’, Bashas’ Diné, Food City, AJ’s Fine Foods and Eddie’s Country Store.

Still, Raley’s isn’t alone in trimming the fat. Grocery Outlet — a major discount retailer — first announced plans to shut down 36 “financially underperforming stores” locations back in March.

The shutters would take place all across the country as part of the company’s “optimization plan.” O’Brien’s Market also called it quits, with the family-run grocery store will officially shutting down its last two remaining stores after a 49-year run in central California.

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