The Nob Hill Foods supermarket that has anchored a stretch of Los Gatos Boulevard since 1971 will close its doors at the end of June 2027, after parent company Raley’s Cos. decided not to extend its lease. The closure will end more than five decades of grocery service at the site, located within the El Gato Village Shopping Center at 15710 Los Gatos Blvd.
The decision was confirmed per a Raley’s statement, as reported by The Mercury News, which first detailed the closure timeline and the company’s response. Nob Hill Foods has had a decades-long presence in the Los Gatos community, and the store’s exit will leave El Gato Village without the grocery anchor that has drawn shoppers to the center for generations.
Raley’s says it will work to place as many affected employees as possible at other Raley’s locations and will support workers through the closure transition, according to the same report. The company has not detailed how many jobs will be affected at the Los Gatos store specifically.
A Pattern of Northern California Store Exits
The Los Gatos closure is not an isolated move. Raley’s Companies previously announced it would close its Mountain View Nob Hill Foods at Grant Park Plaza in May 2026 after declining to renew that lease as well, a decision Hoodline previously reported affected about 50 workers. That closure came alongside the shuttering of a flagship Raley’s store in Roseville and the announced closure of an Antioch location upon lease expiration in April 2026, according to Grocery Dive.
The consolidation has unfolded as West Sacramento-based Raley’s, which operates more than 235 stores across seven states and four Tribal Nations under nine grocery banners, reappointed owner Mike Teel as chief executive in March 2026 following the departure of former CEO Keith Knopf, Grocery Dive reported. Raley’s acquired the Nob Hill Foods chain from the founding Bonfante family in 1998, a deal that expanded the Sacramento grocer into the East Bay, South Bay, and Central Coast with 27 regional supermarkets, according to historical reporting from SFGATE.
Other South Bay Grocery Losses
The Los Gatos closure adds to a string of South Bay grocery exits this year. Silver Creek Community Market in South San Jose is slated to close on September 30, a shutdown that a WARN notice says will cost 61 jobs. Retailers including Rite Aid, Kohl’s, and Macy’s have also trimmed jobs and closed stores, with Rite Aid closing all of its brick-and-mortar locations as of October 2025 and now operating no physical stores at all, per The Mercury News’ reporting.
The pattern extends statewide. At least 49 grocery stores across California closed or announced permanent closure plans during the first eight months of 2026, according to an analysis of state WARN notices and corporate announcements by TheStreet. That trend places the Los Gatos closure within a broader wave of lease pressures and consolidation squeezing California grocers.
What Happens to the Site Next
El Gato Village Shopping Center was purchased in 2022 by San Francisco-based Prado Group for $33 million, according to The Mercury News. Prado Group, founded in 2003, specializes in urban infill residential, retail, and mixed-use properties and has acquired or developed more than 80 Bay Area real estate projects, per The Real Deal’s reporting on the firm’s development focus.
The shopping center sits on 3.4 acres and contains 58,519 square feet of retail space across two buildings; it was 97 percent leased when Prado Group bought it, according to a Kidder Mathews market report. Notably, the Town of Los Gatos’ General Plan update designates commercial properties along Los Gatos Boulevard, including El Gato Village, as key corridors for potential mixed-use housing transitions meant to help the town meet regional housing allocation requirements, per Town of Los Gatos planning documents. Whether Prado Group will pursue residential re-entitlements for the site once the grocery store departs remains an open question.
Where Displaced Shoppers and Workers Can Turn
Nearby Nob Hill Foods locations remain open in Campbell, Santa Clara, San Jose, and Morgan Hill, offering options for displaced staff transfers and regional shoppers once the Los Gatos store closes, according to store location data compiled by StoreLocators. Under California’s WARN Act amendments that took effect January 1, 2026, covered employers executing mass layoffs or site closures must give 60 days’ advance written notice that includes information on CalFresh food assistance and local workforce development board services, per legal guidance from CDF Labor Law LLP. It is not yet known how many Los Gatos employees will ultimately be placed at those neighboring stores under the updated rules.
