Major supermarket chains such as Kroger, Stop & Shop, and The Raley’s Companies are currently undergoing a downsizing phase that began in 2025 and is set to continue until 2027. Kroger announced plans to close around 60 stores by the end of 2026, as revealed during the company’s first-quarter fiscal 2025 earnings call. Similarly, Giant Ahold Delhaize’s Stop & Shop chain confirmed the closure of stores in Basking Ridge and Westfield, N.J., in 2026. The Raley’s Companies also announced the closure of a store in Petaluma, Calif., on Jan. 26, 2027, affecting 48 workers.
The closures are part of Raley’s regional downsizing strategy, which includes shutting down seven stores in California and Nevada. The company aims to provide transfer opportunities to as many affected employees as possible, according to reports from KSRO radio. The decision to downsize was attributed to local market conditions and the need for long-term financial sustainability.
Raley’s initiated its downsizing plan by closing stores in Roseville and Antioch, Calif., followed by the shutdown of a Nob Hill Foods store in Mountain View. The company later announced the closure of its Nob Hill Foods store in Los Gatos when the lease expires in June 2027. Additionally, Raley’s plans to close stores in Brentwood, Calif., and Elko, Nev., by the end of 2026.
The challenges faced by Raley’s, including increased competition from online marketplaces and shifting consumer preferences, have impacted store foot traffic and overall sales. Despite the downsizing efforts, Raley’s has plans to open a new store in Madera, Calif., in March 2027.
Raley’s, which opened its first grocery store in Placerville, Calif., in 1935, has expanded its operations to encompass 235 grocery stores in seven states and four tribal nations under various brand names. The company formed The Raley’s Companies in 2021 after acquiring the Bashas Family of Stores.
The supermarket industry as a whole has been grappling with challenges to maintain profitability, including competition from regional and national chains, inflation-driven product and labor costs, evolving consumer preferences, and unsustainable lease rates. Despite the closure of stores, some chains, like Cosentino’s Food Stores, have managed to adapt and continue operating multiple stores.
Overall, the downsizing trend in the supermarket industry reflects the changing landscape of retail and highlights the need for companies to adapt to evolving market conditions to ensure their long-term success.
