Bay Area/ San Francisco

Petaluma’s Ghost Kmart Springs Back With Hobby Lobby, Boot Barn, Grocery Outlet

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Published on July 17, 2026
Petaluma’s Ghost Kmart Springs Back With Hobby Lobby, Boot Barn, Grocery OutletSource: Google Street View

After sitting dark since early 2020, Petaluma’s former Kmart at Plaza North is finally back in business. Boot Barn and Hobby Lobby quietly opened their doors this week along the North McDowell corridor, with Grocery Outlet lined up as the third tenant later this summer. The onetime big-box anchor has been carved into smaller retail spaces, bringing a mix of crafts, home goods, western wear and workwear to north Petaluma shoppers.

As reported by The Press Democrat, Boot Barn and Hobby Lobby opened at Plaza North today following roughly a year of renovation work that split the old Kmart into three storefronts.

Big Box Turned Into Three Storefronts

The roughly 90,000-square-foot Kmart that once anchored Plaza North has been subdivided in a year-long redevelopment, as detailed in the center’s leasing brochure. Plaza North leasing materials lay out the reconfiguration and name the new anchors slated for the space.

What Shoppers Will Find

Hobby Lobby’s store finder lists 265 N McDowell Blvd as “Coming Soon,” confirming the chain’s new Petaluma address. Hobby Lobby also lists a local phone number for the site, while local business directories and the Petaluma Area Chamber of Commerce show Boot Barn at a nearby McDowell address and note hiring and a ribbon-cutting on chamber calendars.

Local Impact And What’s Next

Leasing materials and city planning documents say the new tenant mix is designed to reactivate a long-vacant anchor spot and boost foot traffic for neighboring merchants. Grocery Outlet, which was founded in 1946 and operates hundreds of small-box bargain stores, is scheduled to open its second Petaluma location on Aug. 27, according to corporate information on the Grocery Outlet investor site.

City planning filings and the center’s leasing packet present Plaza North’s makeover as part of a broader repositioning of the North McDowell retail corridor, converting a single large box into multiple smaller storefronts aimed at steady neighborhood traffic. For shoppers, the immediate upside is more national-brand choice in one trip; for the site, it is a step toward filling what had been one of Petaluma’s most visible retail vacancies.