Raleys closing Market 5-One-5 Sacramento, CA

[storewanderer]

Gee, this was the supposedly very successful store that was the basis for the ONE format. What happened here?

[HCal]

Are they changing it back to the regular format, or closing it outright? Do you know if it's owned or leased?

[storewanderer]

Are they changing it back to the regular format, or closing it outright? Do you know if it's owned or leased?

This is the small 11k square foot store near downtown Sacramento opened under this Market 5 ONE 5 brand, but sort of away from the downtown core/Government buildings area. It is leased. The store is about 3.5 years old. This is the store that was being managed separately from the normal Raleys. But it is basically a carbon copy of what Raleys ONE was trying to be.

https://www.supermarketnews.com/store-d ... et-5-one-5



Every time I went into this Market 5 ONE 5 it had almost no traffic. I thought maybe it was just the time of day I was there or something. I had heard it was very successful.

They are blaming the closure on lack of traffic downtown due to office workers not returning to their offices. This store is not in the office area, it is closer to residential. Office workers left offices in March 2020 which was almost 2 years ago now, and have been in the process of returning to offices in recent months. If the cited reason for closure was the case, why did they keep it open this long? I think the format is a failure and with the Basha acquisition about to happen they can no longer burn money on this format that not enough customers will shop. Maybe had they not tried to price everything outrageously they would have had a chance.

I am a little surprised however they did not keep this open. How much does it really cost to operate an 11k square foot store? Even if you have low volume, with the outrageous prices their margins had to be very high, and small perishable areas likely really were easy to control shrink with. I have to think the store was really bleeding badly to be closing.

[HCal]

Ah I remember this one. When it opened, the description reminded me of Fresh & Easy.

I know many state agencies are still allowing workers to telecommute, but I'm not sure what other businesses are in the area whose workers might drop by during lunch or on the way home. In the end, there may simply not have been enough residential population in the area to support it.

I know the pandemic has hurt downtown markets, so I have to wonder if they tried to negotiate a deal with the landlord. Maybe the landlord thinks someone else will be willing to pay more, but I have to wonder who that could be.

Oh well, it seemed like a good idea at the time. Hopefully Raley's shifts focus back to their core stores and the Bashas acquisition rather than throwing money at these new ideas.