A long-established grocery chain is preparing to close stores in a major market, leaving residents with fewer nearby options as rising operating costs and changing consumer habits continue reshaping the retail landscape.
The decision reflects broader challenges facing grocery operators nationwide, including rising labor expenses, ongoing supply pressures, and growing competition from discount retailers and online grocery services. In response, many supermarket chains have been reassessing store portfolios and closing underperforming locations.
For affected communities, the closures mark the loss of neighborhood supermarkets that have served local shoppers for years and highlight the broader transformation taking place across the grocery industry.
Lucky Supermarket confirms two store closures
Lucky Supermarket has confirmed that it will permanently close two locations in California within the coming weeks:
- Lucky California Danville:660 San Ramon Valley Rd, closing July 17
- Lucky San Francisco:1750 Fulton St, closing September 11
According to the company, both closures stem from sustained underperformance despite prior investments in store remodels to improve operations and enhance the customer experience.
“We routinely assess the performance of all of our stores to ensure they meet business standards. Through the normal course of business, we sometimes have to make the tough decision,” a Lucky spokesperson wrote in a letter sent to KRON4. “This store has had performance issues for an extended period of time. We have worked to enhance and remodel the location, but it has not shown the sales and profit needed to continue operations.”
The company added that eligible employees at the affected stores will have opportunities to transfer to nearby locations, subject to availability and seniority.
Although the closures signal the end of Lucky’s presence in these immediate neighborhoods, the company will continue serving customers through surrounding stores.
Nearby Lucky Supermarket alternatives
Customers will continue to have access to nearby Lucky locations in Danville and San Francisco following the closures.
Danville area:
- 21001 San Ramon Valley Blvd: Approximately 7.6 miles away
San Francisco area:
- 1515 Sloat Blvd: Around 5.3 miles away
- 6843 Mission St: About 8 miles away
Lucky Supermarket and The Save Mart Companies history
Lucky Supermarket was founded in 1935 in San Leandro, California, and became a familiar grocery name across Northern California. Over the decades, the company changed ownership multiple times before being acquired in 2007 by The Save Mart Companies, which purchased 130 stores across Northern California and Western Nevada.
Today, Lucky operates approximately 57 stores throughout the San Francisco Bay Area, according to the company’s website.
Its parent company, The Save Mart Companies, was founded in 1952 and operates more than 200 stores under multiple banners, including Save Mart, Lucky, FoodMaxx, Roth’s, and Chuck’s.
At the same time, the company continues pursuing expansion and renovation projects in select markets. Recent initiatives include breaking ground on new stores in Manteca and Tulare, releasing plans for a new location in South Lake Tahoe, and completing remodels in Ripon and Madera, according to The Save Mart Companies Senior Director of Communications, Public Relations & Government Affairs Phil Keene, Danville SanRamon reported.
Grocery retailers continue to face industry-wide pressures
The closures of two Lucky Supermarket locations reflect broader structural changes affecting grocery operators across the U.S.
Retailers continue navigating higher labor expenses, transportation costs, persistent supply chain disruptions, and intensified competition from discount chains and e-commerce grocery services. Those pressures have accelerated store portfolio reviews and contributed to ongoing restructuring across the retail sector.
According to Coresight Research’s U.S. Store Tracker 2026 Outlook, U.S. retailers are expected to close approximately 7,900 stores in 2026, down 4.5% from 2025, while around 5,500 locations are projected to open, up 4.4%. The trend illustrates continued realignment across retail categories as companies adapt to changing consumer demand and operating costs.
While grocery stores remain essential to daily life, many operators are increasingly optimizing their physical footprints to balance convenience, profitability, and evolving shopping habits.
What the closures mean for local communities
Although other grocery options remain accessible in both areas, the closure highlights the growing challenges of maintaining consistent access to affordable groceries as retailers adapt to changing economic conditions.
Here’s some of my previous coverage of grocery store closures:
- Longtime grocery chain closes stores, exits key markets
- Grocery chain closes final 2 stores in key market
- 39-year-old grocery chain closing 17 stores in 2026
For local residents, the loss of the two longtime Lucky Supermarket locations represents more than a simple business decision. It reflects the continued transformation of the grocery industry and the changing role neighborhood supermarkets play in communities across California.
Related: Convenience store giant sells stores, exits market