Moraga shoppers hoping for a new discount grocery store will have to wait even longer. The planned Grocery Outlet at Rheem Valley Shopping Center, originally expected to open by mid-2026, is now targeting March or April 2027 — nearly a year behind its original schedule.
The delay, roughly nine to ten months later than the project's original mid-2026 target, stems from a combination of setbacks, according to Bay Area Telegraph. The outlet reports the holdups included unusually rainy weather, sewer-line complications and additional issues involving county requirements. Those same delays were previously flagged back in June, when Lamorinda Weekly reported the grand opening had already slipped to early 2027.
The project has been years in the making. Moraga's Planning Commission approved the partial redevelopment of the shopping center back on December 12, 2023, clearing the way for a new 17,404-square-foot grocery store building along with a separate 1,521-square-foot in-line tenant space, according to the commission's resolution posted by the Town of Moraga. The approved plan also calls for two new free-standing pad buildings of 4,500 and 2,152 square feet, the removal of 75 excess parking stalls, and landscaping work that includes removing 20 trees and planting 31 new ones.
Demolition Gave Way to a Rainy Groundbreaking
Demolition crews moved in at the end of May 2025 to level the roughly 11,167-square-foot wing of older retail space sandwiched between CVS and Dollar Tree, per the same account from the town's redevelopment filings. That vacant strip is being replaced entirely by the new grocery store footprint. Not even rain could stop the Nov. 17, 2025 groundbreaking ceremony at the site, Lamorinda Weekly reported.
The project is being funded by developer U.S. Realty Partners, Inc., listed in town documents as Rheem Valley Property Owner LP, with Oakland-based Lowney Architecture designing the rebuild, according to Bay Area Telegraph's earlier coverage of the demolition. Town records also note the Planning Commission's approval was issued as a design review and grading permit exempt from California Environmental Quality Act requirements, and that the shopping-center upgrades did not affect the site's ability to accommodate housing units identified in Moraga's Housing Element.
A Chain Cutting Stores Elsewhere Still Bets on Moraga
The Moraga project is moving forward even as Grocery Outlet trims its footprint elsewhere. In March 2026, the Emeryville-based chain announced plans to close 36 underperforming stores nationwide as part of an effort to improve profitability, according to the San Francisco Chronicle. Despite those closures, the company told the Los Angeles Times it still planned to open 30 to 33 new stores this year.
The closures followed a rough financial year for the chain. Grocery Outlet reported a $225 million net loss for fiscal 2025, compared with net income of $39 million in 2024, even as net sales rose 7.3% from 2024 to 2025, the Los Angeles Times reported.
Grocery Outlet has kept expanding in the Bay Area even amid the national pullback. The chain opened a second Oakland location on Oct. 22, 2026, at 301 E. 18th St., a store independently owned and operated by Jorge Cossio, according to the Chronicle's reporting. That location occupies space vacated by Walgreens in February 2025 and sits next to a Lucky supermarket.
What Shoppers Can Expect When It Finally Opens
Grocery Outlet specializes in discounted groceries, including overstock and closeout merchandise purchased from manufacturers and suppliers, per the Chronicle. Each store is independently owned and operated, and product selection tends to shift over time as new overstock deals come and go, a model the company has used to position itself as one of the largest opportunistic buyers in its industry. The company's own marketing touts savings of 40% to 70% below regular retail prices on most items.
For now, Moraga residents will need to keep waiting. As WhatNow reported, construction is underway at the Rheem Valley site, but with a firm opening date still not locked in, the spring 2027 target remains the best estimate available for when the discount grocer will finally welcome its first customers.
