Raley’s to Shutter Two Food Source Stores

West Sacramento, Calif.-based Raley's is closing two of its Food Source stores in California due to declining foot traffic and sales.

The store at 6366 Mack Road in South Sacramento will close March 14, and the location at 4401 Broadway in Sacramento will close March 28. The leases on both locations are expiring, and Raley’s has elected not to renew, said Chelsea Minor, corporate director of consumer and public affairs.

“Food Source is a small part of our portfolio. We have seven stores and will have only five after this closure,” said Minor. “Unfortunately, foot traffic and sales have declined in both locations and it does not support future investment.”

The company operates 128 stores in Northern California and Nevada under four banners: Raley’s, Bel Air Markets, Nob Hill Foods, and the value-driven Food Source, featuring the tagline “Your Source for Savings.”

Both Food Source locations were also in competition with area dollar and discount stores. The South Sacramento Food Source is a half-mile from a Dollar Tree and about a mile from a Grocery Outlet Bargain Market.

Raley’s is looking ahead to several new stores already in the pipeline. “We are opening one replacement store and two new stores in early 2020. We will be announcing the opening dates shortly,” said Minor, who did not disclose the locations of the new stores.