Raley's to Close 2 More Stores: Report

WEST SACRAMENTO, Calif. — Raley's Supermarkets here plans to close two stores in Northern California and lay off some employees, according to local reports.

Chain officials could not be reached for comment.

The stores — a Raley's in Modesto and a Bel Air Market in Elk Grove — are scheduled to close in March. The two stores combined employ approximately 157 people.

The reports said Raley's will transfer eligible employees to other stores, with the most senior employees getting first priority over less senior workers at those other locations.

Raley's closed a store in November that it converted to a Food Source warehouse outlet. However, the reports indicated that the company said conversion was not an option for the Modesto and Elk Grove locations.

The reports said the reason for the latest closures is the more than 250 non-union stores that have opened in Raley's operating area in Northern California and Nevada since 2008. "Since they're non-union, they can sell at a lower price, and with our operating costs, we have a situation where we have to lower costs to be able to compete," a Raley's spokesman was quoted as saying.

The decision to close the two stores reportedly followed a review by the company to identify underperforming stores.  "This was a difficult decision," the company was reported to have said, "but we must reduce our operating costs so we can effectively compete and continue to provide our customers with the highest-quality products at the most affordable price."