business news in context, analysis with attitude

Safeway’s Vons division is closing its store in southeast Fresno at the end of the month, saying it has been “underperforming” and selling it to a Hispanic foods grocery store.

The announcement came just a day after reports said that Kroger-owned Ralphs is in the process of shutting down five California stores because of lack of profitability – in Fresno, Clovis, Long Beach, Moreno, and in Los Angeles near the University of Southern California. The company has also cancelled plans to open another Clovis store.
KC's View:
We suspect we may be seeing some of the results of the four-month Southern California grocery strike/lockout. The financial ramifications of those months have meant that the chains can’t keep marginal stores open anymore, and have to consolidate their operations wherever and whenever possible.