According to a published report, Raley's has announced they will be closing their sole Elk Grove Food Source store.
The store, which is located at the Marketplace 99 Shopping Center on E. Stockton Blvd., originally opened as a Raley's in 1994. The store was converted to their low-cost warehouse formatted Food Source two years ago in response to lagging sales and competitive pressures from non-union grocery stores.
The Bee reports that Oklahoma-based Lobby Hobby has expressed interest in the space for what would be their third craft and home decor store in the Sacramento region.
With the Food Source closure, there will be only two major grocery stores in Elk Grove east of Highway 99. A smaller Fresh and Easy store operates east of Highway 99 but their parent company is planning on selling or closing all their California stores.
Raley's continues to operate one Raley's and three Bel Air stores in Elk Grove.
The Bel Air store on Elk Grove Blvd., also owned by Raley's, closed last year and has yet to find a tenant for the space. Last year also saw the closure of the Save Mart grocery store on Laguna Blvd.