WEST SACRAMENTO, Calif. — A grocery chain that has served shoppers on the West Coast for more than nine decades is preparing to close several locations as changing shopping patterns and rising operating costs put pressure on its business.
Raley’s Companies, founded in 1935 during the Great Depression, is shutting multiple stores across California and Nevada after deciding not to renew leases at several locations that have struggled financially.
The West Sacramento-based supermarket operator says the closures are part of a broader effort to make difficult decisions about stores that may no longer be sustainable in their current markets.
“A variety of factors contributed to these store closures, including local market conditions and the long-term financial sustainability of these locations,” a company spokesperson told Grocery Dive.
The spokesperson added that responsible management sometimes requires companies to make difficult choices about where to maintain or end operations.
These Raley’s and Nob Hill Foods Stores Are Closing
The latest closures follow several other store shutdowns announced earlier in the year.
Raley’s previously closed a Roseville location in January and an Antioch store in April after choosing not to renew leases. A Nob Hill Foods location, which operates under the Raley’s Companies umbrella, also closed in Mountain View in May, reportedly affecting around 50 employees.
The company has now identified several additional locations that are expected to close by June 2027.
The affected stores include:
- 2400 Sand Creek Road
- 2505 Mountain City Highway
- 157 North McDowell Boulevard
- 15710 Los Gatos Boulevard — Nob Hill Foods
The closures will affect employees working at the locations, although the company is reportedly expected to give impacted workers the option to transfer to other stores where positions are available.
For longtime shoppers, the closures mark another change for a grocery company that has been part of the California retail landscape for generations.
Why Is Raley’s Closing Stores?
Raley’s has pointed to several factors behind the decision, including local market conditions and the long-term financial sustainability of individual locations.
The company has also been dealing with broader challenges affecting grocery retailers, including changing consumer behavior and higher operating expenses.
The closures do not mean Raley’s is leaving the grocery business or abandoning expansion.
Instead, the company appears to be reshaping its store network by moving away from locations that are struggling while investing in markets where it sees future growth.
That strategy comes as shoppers across the grocery industry continue to see retailers reassess their store footprints.
New Raley’s Store Planned for Madera
Despite announcing multiple closures, Raley’s is also preparing to open a brand-new supermarket.
The company broke ground in June 2026 on a new Raley’s O-N-E Market at Riverwalk at Riverstone in Madera, north of Fresno.
The new location is expected to open in spring 2027, providing a clear example of the company’s strategy of closing underperforming stores while expanding into markets it considers more promising.
Raley’s currently operates more than 100 stores under several different banners.
Those include 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.
Grocery Store Closures Continue Across California
Raley’s is not the only grocery operator reducing its store footprint.
Grocery Outlet announced plans to close 36 financially underperforming stores as part of what the company described as an optimization plan. Those closures are spread across multiple parts of the country.
Meanwhile, O’Brien’s Market, a family-run grocery business in Central California, is also preparing to shut its last two remaining stores after 49 years in operation.
The developments highlight the continued pressure facing grocery retailers, particularly locations struggling with weaker customer traffic and increasing costs.
For Raley’s, however, the latest closures appear to be part of a larger restructuring rather than an end to its long-running presence.
After 91 years in business, the company is still opening new stores and operating more than 100 locations, even as some longtime neighborhood supermarkets prepare to close their doors.
Have you ever shopped at Raley’s or one of the stores being closed? Share your experience and thoughts in the comments.
