Albertsons is infuriating Bay Area shoppers over vacant grocery stores

By Susan Guerrero : sfgate – excerpt

Town Hall July 23, 2026 on the Towering plans at the Marina Safeway

In the heart of downtown Larkspur, a tiny shopping center has become the grave site of a former Lucky Supermarket. The building, with its barren storefront and sealed doors, has haunted the neighborhood since 2023, yet there are currently no plans to open another grocery store in its place.

Tina McArthur, a Larkspur resident and board president of the historic Lark Theater, blames the building’s owner: Albertsons Companies.

“I think it’s terrible that they just left their building like that,” McArthur said. “The lights are still on. … I really don’t think they care one bit.”

The Lucky store is not an outlier. Albertsons — the parent company of SafewayVons and other major supermarkets — owns dozens of vacant surplus properties across the U.S., including at least seven vacant California stores listed for sale. An SFGATE investigation found that Albertsons appears to have a history of using its vast real estate portfolio to block the opening of competing grocers through restrictive land covenants or by keeping its properties vacant. In some cases, Albertsons has introduced controversial development plans on its properties that could raze existing supermarkets like Trader Joe’s in Oakland’s Rockridge neighborhood and Safeway in San Rafael without replacing those markets.

Albertsons could leave even more vacant properties on the market as the grocery company plans to shutter an unknown number of underperforming stores in California, and beyond, after its failed merger with the Kroger Company

Grocery companies that keep properties vacant or add covenants to prevent future stores contribute to limited food access in communities, according to Christopher Leslie, a law professor at the University of California, Irvine…

The race for housing  Albertsons’ impacts on grocery availability in the Bay Area are likely to only increase as the grocery conglomerate flexes its muscle into property development. Align Real Estate and Albertsons are developing housing projects at Safeway locations throughout the Bay Area, including plans to build almost 3,500 units of housing across San Francisco’s Marina, Bernal Heights, Outer Richmond and Fillmore districts. The proposed residential housing project that could demolish the Safeway in San Rafael is not part of the Align Real Estate portfolio and is instead managed by Mill Creek Residential…(more)

Lots to take in here. I can remember hearing about food deserts from Malia Cohen years ago. Now we all are being faced with them.

What do we belive and what can be done to break those covenants? The food deserts are yet another reason to blame Wiener density bills for the loss of grocery stores as grocery chains are playing into his HOUSING ONLY” zoning directives, except when he needs an exception and then he creates one..

Grocery Outlet to close dozens of ‘underperforming’ stores

By Aidin Vaziri : sfchronicle – excerpt

Grocery Outlet, the Emeryville-based discount grocer with a large Northern California footprint, said it plans to close 36 financially underperforming stores as it tries to improve profitability after reporting a steep quarterly loss.

The closures are part of a business “Optimization Plan” adopted by the company’s board on Monday and expected to be “substantially completed during fiscal 2026,” Grocery Outlet said in a news release Wednesday announcing fourth-quarter and full-year financial results.

“We made progress on our strategic priorities in 2025; however, our fourth-quarter results made clear that we have more work to do, and we’re moving quickly,” Jason Potter, the company’s president and chief executive, said in a statement. “At the same time, we’re closing underperforming stores, reshaping our new store growth strategy and reallocating resources to strengthen operating results and returns on capital. ”

Grocery Outlet did not disclose which locations will be shuttered. The company, which has stores nationwide, also did not specify how many of the 36 stores are in California or the Bay Area.

Grocery Dive, an industry publication, reported that 24 of the stores slated to close are on the East Coast, citing Potter’s remarks to investors…

The company attributed some of the pressure to the timing of government assistance. Comparable sales were hurt by delayed disbursements from “federally funded assistance programs that many of our customers depend on, including the Supplemental Nutrition Assistance Program,” the company said.

MarketWatch reported the company’s stock fell about 24% in after-hours trading following the announcement.…(more)

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Re-Zoning is going to create a food shortage as agricultural land is now non-agricultural land, and water sources for farmers are not secure, thank to the state water board run by the Governor, farmers are not willing to continue takin on more debt in definitely. How much longer will California be able to claim it has the fourth large world economy when we are losing our food and wine industries that accounts for a huge percentage of the exports. We don’t so far hear anything about his from the candidaates for governor or Congress. All we hear is their opinions on AI and tech, and concerns over the high cost of housing and energy in California. Who is raising alarms about the loss of food production and the closure of supermarkets?