Raley's To Close Rancho Cordova Store Next Month

WEST SACRAMENTO (CBS13) - As it continues to struggle to compete against discount grocers, Raleys of West Sacramento announced two more store closures on Friday.

The supermarket chain said it will close its Rancho Cordova store at 10385 Folsom Blvd. in mid-April and a Nob Hill store in the Bay Area at a later date.

According to a statement from the store, both the closures could result in some employee layoffs, although employees may have transfer opportunities based on seniority.

The statement went on to say "the decision to close the stores was made following a review by the company to identify underperforming stores and determine the future sales volume."

"While several factors were considered in reaching this conclusion, it was clear from our review that future sales would not be able to match the increasing operating costs at both of these locations."

The Bay Area store is in Milpitas and Raley's said it would not renew its lease at that location. It didn't specify when the lease expires.

Friday's announcement follows closures of a Bel Air in Elk Grove and a Raley's in Modesto that the chain announced in January.

The chain is also in the middle of labor contract negotiations, pressing for lower costs to compete against non-union discount stores such as Walmart.